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Minimising CGT bill

A look at minimising your CGT bill.

There are several ways to reduce or delay a CGT bill. For a start it is important to claim all the allowable expenses you can and not to overlook any losses that you can set off against gains. Be aware of  your annual tax-free allowance and try to use it each year if you can.

These are all ways to minimise your tax bill once you have made a disposal. But there are several steps you can take before reaching a disposal to keep your tax bill down:

Take advantage of the allowance of your spouse or civil partner

Make the best use of losses

Pass the tax bill for gifts of business assets and certain other gifts on to the recipient if possible, or pay it in instalments if not.

Invest the gains from any disposals in growing businesses if you don't need the proceeds immediately. You may be able to defer the tax bill by claiming capital gains deferral relief on buying shares through the EIS. It is no longer possible from 23 June to both defer capital gains and claim entrepreneurs' relief on the same gains.

Claim the special reliefs which can reduce your tax bill if you are disposing of a business or farm, including entrepreneurs' relief

To minimise your capital gains tax bill, it is essential to keep a record of the assets you have acquired which may fall into the tax net, together with relevant receipts.

This was taken from Personal Tax 2011-2012.

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