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How to minimise capital gains tax

The average taxpayer is unlikely to have to pay capital gains tax but The What Investment Guide to Personal Tax is here to help.

There is an annual tax-free allowance worth £10,600 and if the transaction is selling a business then you might also be able to claim entrepreneur's relief.

However you may have to pay capital gains tax when you dispose of an asset. The exceptions include the passing on of assets following a death, a gift between spouses or a gift to charity.

It is also worth noting that there is no tax on gains made to do with your home, private cars, personal belongings (chattels), British money and foreign currency to be used for personal spending abroad. Insurance policies, lottery winnings, government stock and certain corporate bonds are also exempt.

For more information on what is exempt from capital gains tax and more tax savings tips, take a look at The What Investment Guide to Personal Tax here.

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