Hey guys, it's sasha investing is a great way of growing your wealth, but as you're growing it, the tax money's gon na be sitting there rubbing their hands in anticipation of the tax that you're going to have to pay. Now there are lots of really straightforward ways of saving tax that i'm not gon na, be talking about in this video, because every other video on youtube talks about them, including ones on my own channel. You can go and open a stocks and shares isa and for the most part that will probably be enough. You won't need any of the tips in this video.

If that's all you're going to be doing and doing all your investing inside it and you can go and use one of my links in the description below for the trading to one two one or for the free trade one. And that will prevent you from paying any capital gains or dividend tax. However, if you invest more than just in the stocks and shares isa, if you invest in crypto, if you invest in companies that are not available within an isa, then here are five really clever ways in which you can pay less tax or avoid it altogether. Now, just before we get into the details a really important disclaimer, i am not a financial advisor or a tax advisor.

I can't provide any of this kind of advice to you. If you need any of this specific advice, please go and find somebody who's suitably qualified to help you. This is purely for educational purposes. First, let's cover the most obvious and simple trick to use up the annual capital gains allowance or at least make as much use of it as possible.

In every single year in the uk you can earn up to 12 300 pounds in capital gains tax outside the nicer without paying any kind of capital gains tax. So if you plan to cash in on long-term investments, you can go and capitalize on up to 12 300 pounds worth of gains every single year, but remember this is only on gains. This is something that people quite often forget. So if, for example, you have made some investments and everyone by 20 at the point where you want to sell, you could sell 61 500 pounds worth of those investments, because 49 200 will be the original investment you've made and the 12 300 on top.

The 20 will be the member which they have risen, and in that case you will owe no tax whatsoever, but even if you don't want to sell, even if you want to hold on to your shares, you can still make use of the zero percent tax allowance By doing one of the following interesting tricks: first, you can do a bed and spouse. You sell your shares for a gain of up to twelve thousand three hundred pounds and then your spouse can go and rebuy the exact same shares. This is something you can't do yourself, because bed and breakfasting will prevent you from doing it. It will count as though you will never have saw the shares in the first place, but there's nothing stopping your spouse doing it.

Instead, the next one is bed and icer. If you invest in more than 20 000 pounds during financial year, you have to go and invest outside in isa. For example, you're allowed when the next financial year starts to go and sell those and immediately put them into your iso re buying and because those are different tax wrappers one is not in tax wrapper and the isa is that will also allow you to essentially make Use of that capital gains tax for that year and move them into a tax-free account. Another option that i haven't seen or heard other people mention is something that i would probably call bed and alternate.

I don't know you can sell shares in something and then go and buy pretty much the exact same thing that is treated as something else by the tax man. So as an example, you can go and, for example, sell voucher shares for a gain of up to 12 300 pounds in any financial year and then immediately go and buy back the ius. I think it is from ishares. The two are almost identical: they do.

The exact same thing: they replicate the s, p 500 and the cost is identical 0.7, but they are completely separate, etfs managed by different companies. So in the eyes of hmrc, they are separate assets and you can easily go and switch back every single year. Capitalizing up to 12 300 pounds worth of gains if you're investing the s p 500, without having to pay any tax, as your investments grow now. Next neat trick that i wanted to mention here is: if you find yourself in the situation where you might go over the 12 300 pound threshold, that you could buy the shares that you've sold within the last 30 days, just after the start of the new tax Year and then go and sell them the next day.

Now what this would do is this would invoke bed and breakfasting rules, and that means that the shares that you did sell within the last 30 days will essentially count as though you never sold them in the first place, and this means that if you sold some Shares in the last 30 days that actually earned capital gains and essentially that capital gains amount will be wiped off, but it could get even more weird if you want to delay by even more than that now. This is something where is going to get a little bit edgy and i personally wouldn't probably do this, but for the sake of science, i wanted to go and cover this, because you could go and invoke this exact trick on repeat so. If you're going to sell some shares for a big big game, then within 30 days you could go and buy those same shares back and then the next day sell them again. And then you could just repeat that for as long as you like until say, for example, the next tax year starts and what that'll mean is that you won't have to pay tax during the previous financial year.

You can essentially delay it for as long as you like. The the downside here is that you do have to actually physically hold the cash to enable you to buy the stuff and then sell it again for as long as you're doing this. So you can't go and use the cash for something else, or you have to go and find it every 30 days in order to do it um. There are also potential minefields in that.

You can't do this trick by buying and then selling on the same day, which would be a little bit less risky, because then the sale would count against buys during the same day as part of day trading rules. And you wouldn't get that same benefit, because it would kind of treat it as though you never bought them in the first place, because the following cell will count against same-day transactions rather than transactions within a 30-day window. So, although i can't recommend anything, i personally wouldn't say that this is an idea i particularly like, but if you're interested maybe go and speak to your accountant about it now, let me cover a really neat trick that some people won't know about. You can actually go and borrow money from inside your isa now the majority devices are not flexible, and this means that if you go and deposit money into the isa and then go and withdraw it, you're essentially going to be losing your annual allowance.

So if you say put fifteen thousand pounds into your eyes and then withdrew that fifteen thousand pounds for whatever reason you needed the money urgently, if you can only then go put another five thousand pounds into that isis during that tax year, essentially you will lose the 15 000 pounds of worth of your annual allowance, but there are flexible stocks and shares isis out there. Some people pointed out in some of my previous videos, for example, vanguard and ig both offer flexible versions. So if you're invested with them, you can then pull money out of your iso and as long as you go and put the money back in before the financial year, you will not incur any kind of penalty. So, for example, if you're buying a house you can go and take the money out of that isa and then put the money back at some point later and then get to continue making use of that allowance, which is really neat, but the beauty here.

Is you? Don't even have to actually have your iso with vanguard or ig to make use of this trick. You could go and open an account with one of those two and then transfer your isa out of wherever you are currently holding it over there and then do that with draw trick and then put the money back now. If you, for example, have something like a free trade or trading to one two account, the likelihood is you're gon na have to sell all your assets before you do the transfer, so you are gon na lose on those foreign exchange fees and, if you're planning to Then rebuy, you, then, might lose even more fees in the process, although you don't have to do that, you can then go and transfer back to whatever provider of choice you have afterwards if you really want to go and play the game, but this is just my Personal interpretation of the rules and different accounts, and it's kind of not really what they're intended to do and that's not the intention of the specific providers. So again, this is probably not one i personally would choose to do if i could avoid it, but it's definitely one to consider now, if you are married, there's another trick that you can consider, which is to split up your investments between the both of you to Make use of double the annual allowance if you haven't split them or if you only want to sell shares that only one of the couple owns you can still do that, because what you can do is you can move shares from one person to another without incurring Capital gains for that moving transaction and when the person who has had the shares moved to them, then sells them it'll kind of treat them as though they bought them at the same time when the original partner bought them way back when now, the downside here is That the cheap, investing platforms don't actually allow you to transfer shares so, for example, trading 212 that i personally use quite a bit.

They only allow you to sell the shares, which means you can't go and do this trick. However, some of the big established platforms that charge large fees do allow it so you'll have to have an account with one of those in order to be able to make use of this trick. The next trick is counterintuitive, but is one that very few people take advantage of. Often the best way to save on capital gains tax is to actually go and take losses.

Now, sometimes, investors hold shares in companies that have taken a big hit over the last few years and they're sitting there in a negative red position, and you might be sitting there waiting on those shares saying maybe they're going to recover. I don't want to go and sell, because you know you can only lose money when you sell. That's the old saying. However, if you don't feel that there is an immediate recovery or you're, not sure about the prospect and you're, not convinced that this is the best place for your money to be, and you actually think that, maybe even if there is a recovery, you'll earn more money By having your money sitting elsewhere, what you can do is you can go and sell those shares and take the hit, and the beauty of that is that whatever you do with the money afterwards, even if you go and reinvested in something else, that loss will then Be booked and then you can go and offset any future capital gains within the same year or any years in the future against that loss.

This is a really really cool thing. You have four years during after you incur the loss to actually go and report it. Otherwise, you essentially lose the benefit of that loss, but once you've reported it, it then just stays there and you can go and carry it forward for as long as you like offsetting any future capital gains that you might incur, that's it. I hope you guys found this useful.

If you have please make sure you go and hit the like button future algorithm so that more people can go and watch this video. Thank you so much for watching and as always i'll see you guys later, you.