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How investors are protecting themselves from increased capital gains tax

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With capital gains tax increasing since the Autumn Budget, investors are turning to tax wrappers like SIPPs and ISAs to shield their wealth
The article from MoneyWeek discusses how investors are adapting to the potential increase in Capital Gains Tax (CGT) in the UK. With the government considering changes to CGT rates, which could align them more closely with income tax rates, investors are taking proactive steps to minimize their tax liabilities. Strategies include realizing gains before any tax hikes, utilizing tax-efficient investment vehicles like ISAs and pensions, and engaging in tax planning to spread gains over multiple tax years. Additionally, some investors are looking into Bed and Breakfasting, where they sell assets at a gain and buy them back after 30 days to reset the cost basis, or using losses to offset gains. The article also mentions the importance of understanding the annual CGT allowance, which allows individuals to make a certain amount of profit tax-free each year, and how investors are planning around this to manage their tax exposure effectively.

Read the Full MoneyWeek Article at:
[ https://moneyweek.com/personal-finance/tax/how-investors-are-protecting-themselves-from-increased-capital-gains-tax ]