Capital gains tax explained?

mdb99jh

I am a student, and currently have a managed investment fund of ~£14000. I am wanting to move this to an easy-access savings account. Will I have to pay capital gains tax on this, and if so, how much? Is there a way I can avoid this tax? I am a newbie in need of help!

Thanx a million

sneekymum

You have an annual CGT free allowance - this year £8,500.

So if your £14,000 has grown form an original £5,500 then there's CGT to pay - otherwise not.

cheerfulcat

mdb99jh wrote:

I am a student, and currently have a managed investment fund of ~£14000. I am wanting to move this to an easy-access savings account. Will I have to pay capital gains tax on this, and if so, how much? Is there a way I can avoid this tax? I am a newbie in need of help!

Thanx a million

Hi,

A lot depends on how long you have held the investment ( you may be eligible for taper relief ), how much of the £14000 is your actual return and the level of your income ( this determines the rate of CGT ). If you wish to avoid CGT entirely, then only realise as much of the gain as is covered by your CGT allowance and sell the rest next tax year.

HTH

Cheerfulcat