CGT: Clients need 'different wrappers at different times'

A platform offers the opportunity to invest in multiple tax wrappers

clock • 4 min read

Barry Foster looks at the tax rules surrounding CGT and which wrapper provides the most protection...

The capital gains tax (CGT) annual exemption reduced from £6,000 to £3,000 from 6 April 2024. That's a significant drop from the £12,300 exemption in place just two years ago. And for trusts it has fallen to just  £1,500. To put this in some context, an investment of £60,000 growing at 5% capital growth would achieve a £3,000 capital gain if crystallised. So what is the value of the CGT annual exemption? Well of course it isn't £3,000 it is the amount of tax you would save by not paying tax on that £3,000 of gain. If you would be liable to CGT @ 20% the annual exemption is worth £60...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Tax planning

Tony Müdd: The chancellor has fewer choices than you think

Tony Müdd: The chancellor has fewer choices than you think

'Do not sell an asset simply because newspapers have rediscovered CGT'

Tony Müdd
clock 03 September 2026 • 5 min read
Warnings of tight timetable as HMRC sets out pension IHT process

Warnings of tight timetable as HMRC sets out pension IHT process

‘A very short timescale for such a significant change’

Isabel Baxter
clock 01 September 2026 • 4 min read
News editor's view: The IHT effect

News editor's view: The IHT effect

The news editor's Friday Night Takeaway from 28 August

Isabel Baxter
clock 28 August 2026 • 3 min read