Legal News | 23.02.23
Gift now or forever hold your peace?
As the tax year draws to a close, do you want to make any last-minute gifts? If so, please consider the following.
Capital Gains Tax
CGT is a tax that you pay on the profit made on the disposal of an asset, as against the cost of acquisition. This is not only when you sell an asset, but also if you make a gift. The CGT annual exempt amount is currently £12,300, but from 6 April this will be dramatically cut to £6,000. From April 2024, it will be reduced again to just £3,000. You might want to take action before the end of this tax year if you are holding assets with inherent gains.
Lifetime Gifts
Have you made use of your £3,000 annual exemption from inheritance tax? If not, you might want to think about making a gift before the end of the tax year. If you didn’t make any use of the exemption in the 2021/22 tax year, you can carry forward for one year, and so could make loved ones very happy before the end of the tax year by giving away £6,000.
If you have any questions about gifts please contact Wansbroughs’ Private Client team on wealth@wansbroughs.com.
