Capital Gains Tax Strategies

Defer gains – realise gains after the end of the tax year, and delay payment of the tax for 12 months. Split sales across the end of the tax year and make use of two years' annual exemption. Make an outright gift to your spouse, who can make use of his or her exemption, too. Delaying a sale can also mean increased taper relief and consequently less tax

Claim a CGT loss for assets which have become of negligible value – this can be offset against current year gains or carried forward if you have no gains in 2005/06

Make a main residence election for your second home – subject to time limits, an election to have your second home treated for tax purposes as your main residence for as little as two weeks can add valuable CGT reliefs when you come to sell it, at a cost of what should be a very small loss of relief on your first home

Use business losses against capital gains – if you have business losses and assets with potential gains, you might realise the gains now, offsetting your business losses to minimise your tax liability

Realise capital losses to offset current year gains – avoid matching problems by re-purchasing through an ISA or having your spouse buy what would otherwise be the matching shares.