Wed, November 27, 2024
[ Wed, Nov 27th 2024 ]: Thomas Matters
Capital Losses and Tax

How to tax-proof your investment portfolio

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Please note: the content contained in this article is for information purposes only and does not constitute financial or investment advice. Treat yourself or someone else this Christmas with 25% off a year's Which?
The article from Which? discusses strategies for tax-proofing an investment portfolio in light of the upcoming changes to the UK's tax system, particularly the reduction in the capital gains tax (CGT) allowance and the dividend allowance. It highlights that from April 2023, the CGT allowance will decrease from £12,300 to £6,000, and further to £3,000 in April 2024, while the dividend allowance will drop from £2,000 to £1,000 in April 2023, and then to £500 in April 2024. To mitigate the impact of these changes, the article suggests several tactics: utilizing tax-efficient wrappers like ISAs and pensions, where gains and dividends are not subject to tax; considering the timing of asset sales to manage CGT; using losses to offset gains; and potentially investing in assets that qualify for Business Property Relief. It also advises on the importance of understanding one's tax position and possibly consulting with a financial advisor to tailor strategies to individual circumstances.

Read the Full Which Article at [ https://www.which.co.uk/news/article/how-to-tax-proof-your-investment-portfolio-abwO12K94IzU ]