Capital Gains Tax could be increased. Here’s how I’d invest now

first_img Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Capital Gains Tax could be increased. Here’s how I’d invest now This week, there’s been a lot of talk about UK Capital Gains Tax (CGT) being increased. A report from the Office for Tax Simplification (OTS) – commissioned by chancellor Rishi Sunak – has recommended a major CGT overhaul. Lifting related rates could potentially raise billions of pounds in taxes and help the UK cover the enormous costs of the coronavirus pandemic.This sounds like bad news for UK investors. However, it doesn’t have to be. With one simple move, UK investors can protect much of their investment gains from the taxman. The simple move I’m referring to? Investing within a Stocks and Shares ISA.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Stocks and Shares ISA: protection from CGT increasesA Stocks and Shares ISA is a tax-efficient savings vehicle that enables investors to generate profits from their investments, free of Capital Gains Tax. This protection makes it an extremely powerful investment vehicle. Surprisingly though, most British adults don’t own one. According to figures from HMRC, in the 2018-2019 year, less than three million people across the nation contributed to one.Aside from their amazing tax benefits, Stocks and Shares ISAs have many other advantages. One key advantage is their flexibility. Unlike a pension (where investment gains are also free from CGT), investors can withdraw money from a Stocks and Shares ISA at any time, without penalty.Another advantage is the very generous annual allowance. Currently, the annual allowance for a Stocks and Shares ISA is £20,000 per year per person. This means that a couple could potentially invest £40,000 per year into these ISAs tax-free. For most families, that’s more than enough allowance to save and invest for the future.Big profits. No taxesA third advantage – and this is the really exciting benefit – is the range of investment options within a Stocks and Shares ISA. Quite simply, these are amazing. Investors can put their money into a whole range of wealth-building assets, including funds, shares, investment trusts, ETFs and more.For example, through a Stocks and Shares ISA, one can invest in a top global investment fund such as Fundsmith Equity. This fund has gained nearly 150% in the last five years. Any gains within an ISA would have been tax-free.Alternatively, if an investor likes to pick stocks themselves they can buy individual shares. One option here is to invest in growth shares such as Rightmove and Boohoo, both of which have delivered stunning long-term returns to investors. Another option is to invest in dividend stocks such as Unilever and Diageo, which pay out regular income. In both cases, capital gains will be tax-free (as will dividend income). In a Stocks and Shares ISA, it’s even possible to invest in international shares such as Amazon, Apple, and Tesla in most cases. Again, any capital gains will be tax-free. Had an investor put £10k into Amazon shares five years ago within an ISA, that money would now be worth around £50k. The capital gains tax payable on that enormous gain? Zero.That’s the power of the Stocks and Shares ISA. For those looking to protect themselves from Capital Gains Tax, this ISA is a no-brainer, in my opinion. Simply click below to discover how you can take advantage of this. Our 6 ‘Best Buys Now’ Shares I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Edward Sheldon owns shares in Rightmove, Boohoo, Unilever, Diageo, Apple and Amazon and has a position in Fundsmith Equity. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Amazon, Apple, and Tesla. The Motley Fool UK has recommended boohoo group, Diageo, Rightmove, and Unilever and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.center_img “This Stock Could Be Like Buying Amazon in 1997” Enter Your Email Address Edward Sheldon, CFA | Friday, 13th November, 2020 I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Image source: Getty Images See all posts by Edward Sheldon, CFAlast_img

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