Individuals who have investment properties, second homes or shares standing at a gain should consider taking action before 5 April 2013 to trigger those gains in this tax year. They could then invest in the seed enterprise investment scheme (SEIS) before 5 April 2014 to wipe out their 2012/2013 gains completely, say Mishcon de Reya’s Andrew Goldstone and Kassim Meghjee.
Why the 5 April 2013 deadline?
Until 5 April this year, an individual can sell any asset at a gain and not pay any capital gains tax on up to £100,000 of gains provided the individual then invests in a company qualifying for the SEIS by 6 April 2014. That can save the investor up to £28,000 of tax. From 6 April 2013, there will be no equivalent relief for capital gains realised in 2013/2014 and future years.