The joys of capital gains tax

The Motley Fool
Capital gains tax
Capital gains tax

If your investments grow in value then one day you may find that you have to pay capital gains tax (CGT) as and when you sell them. CGT is charged at either 18% or 28%, depending upon your income tax rate, but your losses will reduce your taxable gains and, in any event, the first £10,600 of gains in the current tax year are not subject to CGT.

Many assets are exempt from CGT, notably your primary residence and chattels (personal possessions) if they are sold for less than £6,000 -- and when it comes to your portfolio, there are several legitimate ways to avoid CGT. Let's have a look.