• Buy back a similar stock – Sell the required number of shares, but rather than buying back the same shares immediately, buy a similar share or collective. This will require investment advice. Note that for this purpose, when purchasing collectives, accumulation shares and income shares are regarded as the same shares.
The savings described above can be doubled if it is possible to make use of both their own and their spouse’s/civil partner’s unused annual exemption. The transfer of shares to a spouse does not result in a chargeable gain, and the spouse will acquire the shares at the original cost. And if they wish to retain the same shares, they can both use the ’bed and Isa’, ’bed and Sipp’ solutions described above.
Make sure that gains created on other disposals during the year are taken into account when assessing how much of the annual exemption is available
Remember, the annual CGT exemption is a ‘use it or lose it’ allowance. It can not be carried forward. With tax-year end fast approaching, it may be time to review those portfolios and make full use of the exemption.
Dave Downie is technical manager of Standard Life
