Experts give tip to 'protect' investments against capital gains tax
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He continued: “If you left your investments outside the SIPP wrapper, there is no income tax to pay when you cash them in. However, any growth is subject to income and capital gains tax.” It
is also worth noting that people will not be able to make any withdrawals from their SIPP until they reach age 55 (57 from 2028). On additional costs to consider, Mr Morgan said that
stockbroking commission is payable and stamp duty may be applicable on the repurchase when undertaking a Bed and SIPP. He added: “There is also a difference between the selling and
repurchasing prices known as the ‘spread’, which means you have to buy back the shares at a higher price than they are sold. “For regularly traded shares, it’s quite small, but spreads can
be wide for smaller, less widely traded stocks. What this tends to mean is you end up buying back slightly fewer shares than previously held.” But while Bed and SIPPs can be beneficial,
there are a number of other ways people can minimise CGT liability. Mr Jobson said: “If you are married or in a civil partnership, transferring assets to each other without charge, enabling
the use of both CGT allowances.”