As the tax year draws to a close, it is prudent to review your capital gains tax position and if you are likely to make any disposals, to consider the timing of those disposals.

For 2023/24, you are able to realise net gains (gains less losses in the tax year) of £6,000 before capital gains tax is payable. Spouses and civil partners have their own exempt amounts, and can also transfer assets between them prior to disposal on a no gain/no loss basis to make best use of their exempt amounts.

From 6 April 2024, the annual exempt amount reduces to £3,000.

If you are planning disposals in the near future and have yet to use your 2023/24 annual exempt amount, where possible, it may make sense to make the disposal before 6 April 2024 to take advantage of the higher annual exempt amount for this tax year, and also to leave next year’s annual exempt amount available for disposals in 2024/25.

We can help you understand the tax implications of making a capital disposal and help you decide the best time to make the disposal. Contact us at enquiries@ardury.co.uk to discuss further.