Whilst we are in the mist of the global crisis, many stock markets have fallen. If you intend to give away any assets at some point to family members, such as shares or a property, now is a good time. 

When assets are given away especially to family (connected person), you trigger a disposal for Capital Gains Tax [CGT] and the CGT is calculated market value thus having a lower market value will either save some tax or may create a loss that can be carried forward to future Capital Gains.

SHARES

NEGLIGIBLE VALUE - Also - you can cash in on worthless shares. If shares are worth close to £nil or £nil, we can make 'negligible value claim', which generates a Capital Loss for CGT purposes without actually selling the shares. This loss generated can be used against other Capital Gains to save tax. (Obviously, any future sale at a higher value will generate a capital gain, but don't forget we have the capital gain annual exemption currently worth £12300 in 2020-21).

LIQUIDATION - The same applies for any company that has gone into liquidation. To claim a capital loss we must declare it on your personal tax return in the tax year the company goes into liquidation. We cannot just offset in a later year without declaring it first; no claim = no allowance.

If anyone feels they would like to take advantage of any of these options above, please contact me.