Year End Tax Review 2008 Contents New Year's resolutions Investment limits Borrowings and tax Family tax planning Mr and Mrs Give generously and save tax Jam today, or jam tomorrow? Tax payback - tax credits Bringing it back home Children's pensions? A matter of trust Children's savings? All change for gains Second homes Portfolio gains Capital ideas Tax-free perks Employee pensions and NIC Pension policies Employee cars and fuel Business tax Pay rise for the other half? Company or trade Two jobs = too much NIC Should VAT be flat? VAT and cash Inheritance tax One careful owner

Portfolio gains Everyone has an annual exemption for CGT (£9,200), but you only use it if you sell something. That means that making a gain of £50,000 in five years' time is likely to cost you a lot in CGT, but if you can split it up into chunks of £10,000 each year you will pay very little. If you have a portfolio of investments, it is common for your investment manager to sell some near the end of the tax year to trigger capital gains, reinvesting the proceeds in something else. There is a cost in commission, but the tax saving is almost certainly much greater. It's important to make sure that the manager knows if you have realised gains on other assets - if you have used up your tax-free allowance elsewhere, the switching plan won't save you tax. That's particularly important this year, as the rate of CGT on investments is likely to be lower in 2008/09 - the new flat rate of 18% will be less than many investors will pay in 2007/08. Action Point! Are you taking full advantage of the CGT exemption?