Capital Gains Tax

(2 min read)

Capital Gains Tax (CGT) allowance: halved and halved again

The 6th April 2024 will mark the start of the new 2024/25 tax year and a further reduction in Capital Gains Tax (CGT) allowance from £6,000 down to £3,000. The once generous rate of £12,300 ended last year and with tax-free CGT allowances ebbing away many investors will be facing a potentially inevitable tax liability for the first time on investment profits.

We have always placed an ongoing emphasis on tax efficiency. As a result of taking up ISA and pension allowances on behalf of our clients, today nearly three quarters of all the money we invest is in tax-efficient accounts. In General Investment Accounts (GIA) we have gone further still by using capital gains allowances in anticipation of the above reductions and have offset profits against capital losses where possible.

To find out how the new reduced CGT allowance affects your portfolio, you can view the new Tax page on our website and you are also invited to complete our short Survey if you can spare a couple of minutes. Scroll down on the Tax page to find the survey.

If you need an introduction to a tax adviser or accountant please contact us.

Montgomery Associates Investment Committee
March 2024

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