In Focus: Tax  

CGT gets another reprieve on 'tax day'

Offsetting

Cathy Russell, tax and estate planning consultant at Canada Life, has urged advisers to ask clients whether they have already used their annual exemption for this tax year.

In a case study available on the Canada Life adviser site, she emphasised that both gains and losses could be crystallised before the end of the taxt year.

She said: "Remember that losses can be offset against gains which arise in the same tax year and, if the client has any unused losses left over, these can be banked with HMRC and carried forward indefinitely.

She added: "Don’t forget to check if your clients have already banked losses with HMRC – as they could be used to reduce any CGT payable on withdrawals made this tax year."

simoney.kyriakou@ft.com