As each years budget approaches there is usually press speculation that capital gains tax will be abolished but it survives. It is levied on the profit made when an asset is sold.
Not all assets are liable to Capital Gains Tax however and there is a range of exemptions and reliefs to take advantage of.
We all have an annual exempt limit. You need to ensure this is being used for maximum effect. Could there be a gift of a share in an asset to a spouse some time before selling so that you double up the exemption and spread the tax rate across lower rate payers?
Timing the disposal can delay having to pay the tax for a full year.
Business assets enjoy a privileged status and up to 75% of the gain can be relieved from tax. There are however detailed rules and it is a relief that can easily be lost if you are not vigilant.
Many now have second homes but fail to protect themselves from unnecessary tax on selling these.
Having made a gain there are some ways in which it can be sheltered from the taxman.
The time to plan for Capital Gains Tax is well before the sale. It starts when an asset is acquired. There may be elections to decide upon and lodge with the tax man. If business asset taper relief is potentially available its continuing qualifying status needs to be monitored.