how do i escape without paying tax from UT's

blinko

how do i escape without paying tax from UT's

greetings all i have some unit trusts and i have made some gains about 5% but there not in an ISA so i was just wondering if i would liable to any tax.

i thought you only paid capital gains tax on gains of £8200 or more ?? but what about income tax

and also i havent used my maxi ISA allowance this year is there anyway assuming im liable to use my ISA allowance to get rid of any tax i may owe.

thanks

cheerfulcat

Hi, blinko,

i thought you only paid capital gains tax on gains of £8200 or more ?? but what about income tax

No income tax on the gains, just CGT, with the first £8500 ( £8800 next year ) exempt. Any income produced by the fund is liable to income tax at 10% ( BR payer ); this is covered by the tax credit that comes with dividends.

and also i havent used my maxi ISA allowance this year is there anyway assuming im liable to use my ISA allowance to get rid of any tax i may owe.

Well, in theory you could bed-and-ISA the fund, that is, sell it and buy it back within an ISA. Whether you could open an ISA in time to use this year's allowance is another question...but it's worth a try. Squaregain are super-quick and it is quite possible that they will be able to open one for you instantly ( depends on whether you're on the Electoral Register, I think ). Or, if you already have a broker's account, the broker should be able to open an ISA for you right away.

HTH

Cheerfulcat