Use your annual exempt amount every year

The £3,000 annual exempt amount can't be carried forward, so realising gains gradually across multiple tax years — rather than all at once — can mean using several years' worth of exemption instead of just one.

Transfer assets to a spouse or civil partner

Transfers between spouses and civil partners are generally free of CGT, meaning a couple can potentially use both partners' annual exempt amounts, or shift ownership towards whichever partner pays a lower tax rate, before a joint asset is eventually sold.

Offset losses against gains

Losses on other investments (crystallised by actually selling them, not just a paper loss) can be offset against gains in the same tax year, and unused losses can typically be carried forward to offset future gains — but they must usually be registered with HMRC, sometimes within a set time limit, to be used later.

Use tax-advantaged wrappers

Gains inside an ISA or pension are entirely free of CGT. Where possible, holding growth investments within these wrappers (subject to their own annual contribution limits) avoids the issue altogether, rather than needing to manage CGT after the fact.

Consider the timing of a sale

If a large gain would push you from basic-rate into higher-rate CGT for the year, spreading a sale across two tax years (selling part in one tax year and the remainder shortly after the new tax year begins) can sometimes reduce the overall rate applied, depending on your total income and gains in each year.

Be careful with tax avoidance schemes

Aggressive schemes claiming to eliminate CGT entirely through complex structures often attract HMRC scrutiny and can result in penalties well beyond the tax originally due. The strategies above are established, mainstream approaches — anything sounding too good to be true in this area usually is.

Key takeaways

  • Spread gains across tax years to make full use of each year's exempt amount.
  • Transfers between spouses are CGT-free and can help use both partners' allowances.
  • Register and carry forward investment losses to offset against future gains.
  • Using ISAs and pensions for growth investments avoids CGT on those holdings entirely.