Selling Assets Chargeable to Capital Gains Tax
If you have an asset such as shares that you’d like to sell and it will result in you paying Capital Gains Tax (CGT), it’s a good idea to delay the sale until 6th April 2021 or after.
With the exception of residential property, selling assets before 6th April 2021 will result in the transaction being included in your 2020/21 tax return, which needs to be paid by 31st January 2022. If you wait until after 6th April, the sale will go onto your 2021/22 tax return, which won’t be due until 31st January 2023.
That’s an entire year of extra time to save up, which will greatly benefit your budgeting and cash flow throughout 2021 and 2022. It just goes to show that sometimes a little patience can go a very long way.
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Tagged as: Personal Wealth
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