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Capital Gains Question

Hi

I've never dealt with capital gains before so hopefully some one can give me a simple answer to this question.

Due to my job I move around a fair bit and can rent houses at advantageous rates, therefore I don't currently own a house. I am concious that at some time I will have to buy a house and therefore will probably realise a substantial amount of my investments (generally equity and cash ISAs and TOISAs) to put down as a deposit on a house. I understand that Capital Gains is payable on gains of over around 7500(?), but is there any way of 'storing up' this allowance, ie if I don't 'claim' it one year can I transfer my allowance to the next? If not is there any other way of legally avoiding paying Capital Gains ( I suppose I could time my purchase of a new house to take place early in the FY and realise some investments in one FY and some 2 weeks later in the next?)

Regards

Neil

Reply to
Neil Cummins
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Proceeds from ISA and TOISA are free of all tax, including capital gains. Equity investment attracts CGT, but there are indexation allowance (gains made pre-Apr 98 to take account of inflation) and taper relief (the longer you own assets the less you pay; chargeable gains are reduced generally 5% pa after 3 years).

but is there any way of

No.

If not is there any other way of legally

This may be advantageous depending on circumstances.

Alec

Reply to
Alec

Alec

Many thanks - I hadn't realised that ISAs were free of CGT as well as Income tax - thats my main concern addressed.

Regards

Neil

Reply to
Neil Cummins

ISAs are not subject to Capital Gains. You can use your CGT allowance for the year by selling investments to produce a chargeable gain and using the money to buy a different investment. For example, you could sell your Legal & General FTSE 100 index tracker, and use the money to by a Friends Provident FTSE 100 index tracker.

Buying the same one again will not work unless you wait more than 28 days to buy it.

Reply to
Jonathan Bryce

In message , Alec writes

But not Inheritance Tax, sadly.

Reply to
john boyle

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