In the tax year to 5th April 2009/2010 the CGT allowance is £10,100 (2008/2009 £9,600)

This means that you do not have to pay tax on gains from buying and selling shares or other investments during the tax year up to that amount. Remember also that you do not normally have to pay tax on any gain you make when you sell your main residence.

If you have used your CGT allowance, don't forget your ISA allowance. Both a 'Cash ISA' and a 'Stocks and Shares ISA' can shelter capital gains on investments, for example unit trust holdings, worth up to £10,200 per year for people aged 50 or over and £7,200 per year for everyone else. From 6 April 2010, the ISA limit will increase to £10,200 per year for all ISA investors.

<< back