Tax-Free Gains 2019-20 | Capital Gains Tax

There are still a number of sales (disposals) that a UK taxpayer can make that will not incur a charge to the UK’s Capital Gains Tax. For most of us, they are limited in extent, after all, legislators have had plenty of time to close any favourable loop-holes.

Packing Up

For most of us, the major tax-free gain remains the sale of our home, but even this generous relief can be compromised. For example, readers who have let their home for a period should take professional advice to see if this will trigger a CGT liability when they sell.

tax-free-gains-2019-20

Also, for the tax year 2019-20, individuals are entitled to make chargeable gains of up to £12,000 and pay no CGT.

If you jointly own a chargeable item, you would both be entitled to this £12,000 exemption and the £6,000 personal possession relief.

Other Tax-Free Gains Include:

personal possessions as long as the proceeds do not exceed £6,000
your car, unless used in a business
anything with a limited lifespan, unless used in your business
ISA’s

Additionally, any gift to your spouse or civil partner, that would usually be subject to a CGT charge, is free of any CGT liability.

tax-free-gains-2019-20

Reduce Your CGT Bill

Even if none of the above exemptions apply in your circumstances, there are a considerable number of additional reliefs you may be able to claim to reduce the impact of any CGT payable. If you are likely to be making disposals it is worth the investment to speak to our team how you can legally reduce any impact.

A final note: take professional advice BEFORE you make the disposal. Seeking advice after disposal is rather like waiting for a bus after the last service has departed.