Research conducted by Unbiased.co.uk (the specialist search engine for Financial Advisers) suggests that £148 million is being “wasted” on unecessary Capital Gains Tax.
The obvious flaw in their methodology is that it might be not always best advice to dispose of an investment to use a Capital Gains Tax allowance, nor is it necessarily advisable to keep an investment that is inappropriate just to avoid tax. However, a more basic lesson to ensure careful thought is given on how best to manage tax bills for example:
- By using appropriate allowances, for example, ISAs & Pensions as well as Capital Gains Tax
- Considering other ‘wrappers’ for example Life Assurance bonds
- It may be beneficial to pass assets to a lower earning spouse, or at least to split ownership to either reduce tax, or double allowances