End of tax year: Making the most of allowances
By Tom Carnegie, 29 Jan 18
Advisers should act now to make sure their clients make the best use of allowances as the countdown starts for the end of the UK tax year. Click through the slides to see the Prudential technical team’s list of actions advisers should consider.
Cameron said it is possible for clients to realise gains of up to £11,300 this tax year with no capital gains tax (CGT) liability.
To use this exemption, client holdings in Oeics might be disposed of to realise gains up to this level.
He said advisers do not need to wait 30 days to invest the proceeds in an identical fund to avoid the “bed and breakfast rules”.
This rule only applies when a client is buying and selling units within the same fund and class. Its purposed is to stop people from excessively benefiting from the process of rebasing unit prices.
“There is no need to wait 30 days for investment in a non-identical fund or perhaps even a different wrapper, Isa, bond or pension. Each have their own merits,” Cameron said.
Tags: Prudential
