There are many ways to reduce your capital gains tax bill and the use of the spousal exemption is a very effective way of doing this.

Everyone in the UK has an annual Capital Gains Tax exemption of £10,900 (2013/14). This means you can make capital gains of £10,900 before you have to pay tax.

In addition to this, assets can be transferred between spouses and civil partners on a no gain-no loss basis and give no rise to capital gains tax.

By transferring assets in this way, prior to any sale, you can utilise both capital gains tax exemptions, thereby reduce your capital gains tax bill.

There are of course some more rules around this, if you would like further information please click here to contact us.