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Reducing the Bill

One of the most simple and effective uses of the allowance is for married couples or civil partners to hold assets in joint names to double the allowance (assuming they own equal shares) that may be offset against the gain to £19,200 before CGT is payable. Provided you don't go over that limit, you won't have to pay any CGT, as long as you have not used up any of the allowance by disposing of other assets in the same period.

For property investment, the real saving comes if at some stage you have used it as your principal private residence (PPR). You don't normally face paying CGT on gains you make when selling your PPR - but you can also make use of it for other properties you own.

If you own an investment property, you can still make use of PPR relief by using it as your main home at some point before you sell it. This will give you the last three years' worth of growth free from CGT as well as the period in which you live there. The Revenue does not specify how long you need to have lived there, but may ask for proof, and at least a six month stay is recommended.

If you let the property at some stage you will be entitled to up to £40,000 letting relief against your capital gain and this is available for each owner - so if it is in joint names, this doubles to a maximum £80,000. However, letting relief is only applicable to properties which have at some point been your main home.

Legal fees and stamp duty count as part of the cost of buying a property, as do selling costs such as estate agent fees - and these can be offset against any gains.

By the time you take off any available reliefs and the annual exemption, you may find that a large part of the capital gain has disappeared. This does not just apply to a second property, but it could also apply to a third or fourth property, both in the UK, or overseas.

Profits on shares and units trusts are liable to CGT, as are shares in investment trusts.

However, there is no CGT on shares or units held in an ISA or pension, for example, and there are special reliefs available for venture capital trusts or shares held for at least three years in an enterprise investment scheme. Business asset roll-over relief is also available, enabling the CGT payable on gains on a chargeable qualifying business asset to be deferred until a point in the future.