The Capital Gains Tax annual exemption for the current tax year, 2023/24, is £6,000 per individual.

Any gains made on the sale (or gift) of items such as second homes or shareholdings (outside of ISAs) above the annual exemption will have Capital Gains Tax arising and should be reported on a Tax Return.

The annual exemption will reduce further in April 2024 to £3,000, its lowest point since 1981.

The annual allowance cannot be shared with anyone else, including married couples. However, any transfer of assets between spouses is treated as giving rise to neither a gain nor a loss.

If the annual allowance is not utilised in a tax year, you are not able to carry it forward.

If you have multiple investment portfolios, it is important that you liaise with the Investment Managers regarding any gains, so you do not breach the annual exemption across all of them.

If you are thinking of selling or gifting assets, please get in touch with our Private Client Director, Deborah McSorley, to discuss your options: