Tax Tips

Your home - The sale of your main home is usually exempt from capital gains tax. However, if you acquire a second home you have two years from the date you bought it to make an election as to which should be regarded as your main residence for capital gains tax exemptions. Once an election has been made it can be changed at any time. Failure to make an election within the required time means the decision is left to H M Revenue & Customs

Share become worthless - If you have shares that have become virtually worthless you may make a claim for negligible value. Details of these shares must be shown on the list held with H M Revenue & Customs in order to qualify. This claim would reduce gains arising in the year but you should ensure this does not cause you to waste your annual exemption.

Annual Exemptions - There is an annual exemption which is £10100 for 2009/2010. Husband and wife and civil partners are both entitled to an annual exemption. Therefore it may be advantageous to distribute your share portfolio between you to benefit