Self-employed Income Support Scheme
- It has been reported that only 2.3 million only 2.3 million he says) have claimed under the Scheme when apparently 3.5 million emails were sent out by HMRC to individuals who they thought were eligible
- If you or your friends have not claimed, then it is well worth them checking to see if they are eligible
- It is important to note that members of Partnerships can each claim
- The scheme is actually due to end this Sunday (31 May) and we are awaiting an update from the Chancellor as to whether it will be extended
Capital Gains Tax (CGT)
For 2020/21, individuals are entitled to an annual CGT exemption of £12,300 and trustees up to £6,150. This represents an increase on 2019/20 when the exemptions were £12,000 and £6,000 respectively.
If you think that your investments have made substantial unrealised gains and you have not yet made use of your CGT exemption, you should consider taking financial advice as you may be able to utilise your CGT exemption, or similar. You could for example, consider reinvestment in an ISA (subject to the ISA limits), reinvestment by a spouse/civil partner or reinvestment into a similar holding. Please contact us on 01642 432555 for more information.
Consideration should be given to transferring assets between spouses/civil partners before encashment to enable each to use their annual exempt amount – this requires a genuine and unconditional gift from one spouse to another.
It is important to consider whether any investments have made a loss and whether excess gains could be offset by any losses. Losses can be carried forward indefinitely, so it is important to include gains, losses and the annual exemption in any calculation to determine how to maximise relief.
The above taxation information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change.
The Financial Conduct Authority (FCA) does not regulate Taxation advice.