Tax Trap #6: Ignoring Capital Gains & Dividend Taxes

Number six ignoring capital gains and dividend taxes. Whenever you buy and sell an asset like a stock crypto, even houses and you make a profit, you owe the government money. It's called capital gains tax and it's quite sizable. However there's a CGT allowance which if you make any gains below that amount, there's no tax deal. Unsurprisingly the CGT allowance has continued to be reduced by the government over the last few years. In fact it's dropped from £12,300 to in 2022 tax year to £3,000 now. So one way to fix that use your ISAs. Use your SIP to sort of like do tax efficient investments so there's no tax on investment done in the isa. If you want a deep dive join my tax hack X Ray Challenge for doctors and healthcare professionals. It will be a two hour session where we use a fine tooth comb to go over all the tax areas and more and compare the checklist before April 5th.