There have been several articles about 'banking' indexation allowance and taper relief in recent weeks but I have seen nothing about what to do with unrelieved capital losses arising from 2006/07 and earlier tax years. For instance, should assets be disposed of before 6 April 2008 so as to use the unrelieved capital losses and get effective relief at 40% for higher rate taxpayers or should the disposal(s) be delayed beyond 5 April 2008 when relief will be effectively at 18%? Taper relief is given on any gain after relief for losses (current and brought forward) so this will be a factor to consider. Also, should disposals be made to use the annual exemption currently worth £3,680 for a higher rate taxpayer?
What have other readers advised their clients to do in such a sceario?
TimH