Have you made a capital gain this financial year?
If you find yourself with a capital gain this year because you sold an investment property or some shares, it is time to take stock of your other investments and determine if now might be the right time to realise a capital loss. Capital losses can only be offset against capital gains and can be a way of reducing your taxable capital gains.
You might have some assets or investments that have lost value from their original purchase price. If this is the case and you no longer wish to retain the asset or believe that it is unlikely that they will recover their original value, then it might be worthwhile selling the asset and crystallising the loss in the same year as you have made a capital gain. The offset of the loss will at least cushion some of the impact of the gain and potentially reduce the tax payable.
Rebecca Mackie, Partner, Paris Financial
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