How Do You Avoid Or Reduce Capital Gains Tax On Share Profits?
I assume you are in a situation where shares you acquired some time ago are now worth a lot more than they were then? Specific advice will need a detailed knowledge of your particular circumstances, so you should speak to a financial advisor, but I can give some general tips. The first thing you need to do is to calculate your gain, which will be the price you sell for less the original purchase price. You can also deduct any expenses incurred when buying or selling the shares – eg broker’s fees. If you have any capital losses in the same tax year you can deduct those from the gain on the shares. Although any other capital gains have to be added on! If you anticipate a capital loss in the near future you may be better off waiting until that loss is realised so you can use it to swallow up (or offset) the gain on the shares. You get an annual exemption of £10,100 worth of gains before you have to pay CGT. If your net gain is less than this you have no CGT liability any nothing to worry
