New Years resolution to use CGT allowance

The responses to polls on New Years resolutions for 2013 show an increasing desire among people in Northern Ireland and the rest of the UK to get to grips with their finances.

Resolutions such as changing banks, reviewing the current mortgage, making a Will, and other financially orientated goals are regularly being cited as the 'things to get done' in 2013. Another resolution which is increasingly mentioned is making full use of capital gains tax (CGT) allowances to lower tax obligations.

There is an annual allowance of £10,600 tax-free profit from the sale of assets or investments, after which point capital gains tax is payable at 18 per cent or 28 per cent depending on the total amount of your taxable income. Careful tax planning can lower the amount of capital gains tax paid - for example, splitting a sale over two tax years to make use of two annual allowances, or transferring some of your assets or investments to your spouse to make use of their annual allowance.

For more information on capital gains tax, inheritance tax, income tax, or general tax planning, contact one of the tax advice specialists at Wilson Nesbitt in Belfast or Bangor by calling 0800 840 9288.