An increase on Capital Gains Tax has been announced in today’s Budget by Labour Chancellor Rachel Reeves – but there is a way to legally avoid it.
There were fears that Capital Gains Tax could have been increased for second homes and for investments, in today’s Autumn Budget, the Chancellor announced that an increase in Capital Gains Tax rates would only be applied to stocks and shares investments.
Capital Gains Tax is effectively a tax on profits, in this case on any shares held which are not held inside a stocks and shares ISA.
Today, the government announced that Capital Gains Tax on shares would be increased – on the lower rate from 10 percent to 18 percent and on the higher rate, from 20 percent to 24 percent.
But Matthew Jones, precious metals analyst at Solomon Global, says there is a way to legally avoid Capital Gains Tax – by using cash.
Not just any cash, of course, but investing in currency, specifically bullion coins.
He said: “A few years ago, you could make a £12,000 profit on investments before you were taxed. Today, it is just £3000, and rumour has it that even this allowance could be removed. To make matters worse, the percentage paid on capital gains rise in a double whammy.
“There is a silver and gold lining: British legal tender coins. All gold, silver and platinum bullion coins produced by The Royal Mint are CGT-free investments.
“Anyone holding them will keep 100% of all profits and not have to share any of it with the government. Gold coins are also exempt from VAT, making them a double win.
“Over the last five years, gold has soared over 70% and has historically performed incredibly well during times of fear and uncertainty.
“It’s no surprise that gold is the ‘go-to’ asset for wealth protection.”
