When you dispose of (usually by selling) an asset, any profit you make will be subject to a tax known as Capital Gains Tax.

However, each tax year you will only pay tax on any profit you make which exceeds the annual exemption amount set by the Government.

For the 2017/2018 tax year the annual exemption for individuals was set at £11,300 and for trustees it was £5,650.

It may also be possible to offset any profits you make by any losses. Plus you can carry losses forward indefinitely. When calculating your investment profit and loss figures it is therefore important to consider the full picture so you can make the most of the tax relief available.

You should take financial advice if you haven't used up all your annual exemption but have made unrealised gains on any investments.

Your advisor can tell you whether you can use your exemption or another form of tax relief such as an ISA or similar reinvestment. You may also be able to look at reinvestment by your spouse or partner, taking into account all asset transfers so that you can both maximise your annual allowances.

Please note that levels of tax relief can change and that this information is based on current understanding of taxation legislation and regulations. The Financial Conduct Authority (FCA) does not regulate taxation advice.

Please do call us for further advice and information on 01603 673502 or email ask@nurturefp.co.uk and we will be happy to assist you.

Article expiry: 05 Apr 2018