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

Capital ideas Portfolio investment is all about "swings and roundabouts", so many people have some capital losses in their investment holdings. You can hold onto these investments and hope that they will recover, but if your sales have given rise to chargeable gains above your annual exemption this year, it may be worth triggering the losses by disposing of the shares in order to save tax now. Some people will have made gains in the past, and have current losses. It is frustrating that you cannot generally get back CGT paid in earlier years on account of current losses. However, it is possible to recover that CGT, by "reinvesting" the gains in a new qualifying Enterprise Investment Scheme company. Although such investments are risky, the CGT recovery and income tax relief on investment provide a substantial return straight away, reducing the exposure significantly. Action Point! Do you have losses which could save you cgt? Have you gains you want to reinvest?