Capital Gains Tax – Annual Exemption
The Capital Gains Tax annual exemption for individuals will reduce from its current amount of £12,300 to £6,000 from 6 April 2023.
Further, from 6 April 2024, the Capital Gains Tax annual exemption for individuals will reduce permanently from £6,000 to £3,000.
The level of proceeds at which all disposals must be reported, regardless of whether there is Capital Gains Tax payable, is fixed at £50,000.
The Capital Gains Tax annual exemption for trusts will continue to be half of that for individuals.
Capital Gains Tax – UK property
Reminder – Capital Gains Tax on most disposals of UK property must be declared to HM Revenue & Customs online within 60 days of completion. Any Capital Gains Tax payable must also be paid with the same 60 day period.
Voluntary National Insurance Contributions
If you are a man born after 5 April 1951 or a woman born after 5 April 1953 you have until 5 April 2023 to pay voluntary contributions to make up for gaps between tax years April 2006 and April 2016 if eligible.
After 5 April 2023 individuals will only be able to pay voluntary contributions for the past 6 years.
This may not be enough to qualify for a new State Pension if you have fewer than 4 qualifying years on your National Insurance record, you usually need at least 10 qualifying years in total.
You will need a Government Gateway account to check your contributions – see https://www.gov.uk/check-national-insurance-record
Article prepared by TFO Tax.