LYNDHURST FINANCIAL MANAGEMENT BLOG

It is likely that taxes will rise across the board, therefore it is essential to make use of the tax breaks currently on offer, your annual ISA allowance is one of them. But what if you don’t have any new money to invest? You could save tax on your existing investments! By cashing in your existing investments, you could open or top up your Stocks and Shares ISA and choose to hold the same investments or choose new investments which could save you tax now and in the future.

Under current tax rules, you can’t transfer investments straight into an ISA. You must sell them and use the proceeds to invest into your ISA. By selling your investments you will realise an gains or loss. If you realise a gain you can make up to £10,100 this tax year without paying Capital Gains Tax (CGT). If you realise a loss under current tax rules you can carry forward this loss indefinitely and offset them against future gains effectively increasing your CGT allowance at this time.

Once your investments are held in the ISA wrapper they are protected from any future gains and tax and there is no tax on income you receive.

If you have investments outside of an ISA wrapper and have not yet maximun funded your ISA contribution for the current tax year then call us on 0800 435648 or email admin@lyndhurstfm.co.uk to speak to one of our independent financial advisers.