Learning to be clever with your capital gains is a must if you want to be a savvy investor. Here are three useful tips to consider to make your capital gains as cost-effective as possible.

1. Invest capital gains in EIS to defer tax.
Investing a taxable gain in an EIS allows you to defer it for as long as that money remains invested. In practice, you can defer paying capital gains tax on this money indefinitely if you continue to reinvest it in an EIS each time you dispose of your shares (providing you have held them for three years, before disposing of them, each time).
An added bonus here is that when you invest in an EIS, any gains you make on that investment are themselves exempt from capital gains tax, provided you hold the shares for more than three years, and have received full income tax relief on those shares. Some EIS funds are very accessible, with minimum investments of around £5,000.
For further information on EIS funds, including the Access EIS fund which has a minimum investment of £5,000, click the button below.
2. Invest capital gains into a property trust.
Investing your capital gains into a property trust means that capital gains tax is only payable on the sale of that property, meaning you can potentially defer it indefinitely. In the event of your death, the beneficiary of the trust will not have any capital gains tax to pay, but capital losses will not be allowable either.
3. Make use of gifts and losses.
Gifting assets to others transfers any capital gains liability they may carry to the recipient when they sell the asset. Because of this, the recipient will have to agree to the transfer. Alternatively, selling assets at a loss can reduce your overall capital gains liability.
Get your free guide to EIS

Want more information on EIS tax reliefs?
Download your copy of our free guide. Featuring an analysis of UK investor trends, investment case studies and an EIS cheat sheet.
Register to learn
more about our data,
fund and venture capital
Related articles
5 min read
Forget crypto: why are millennials investing in venture capital?
Why are millennials more interested in venture capital investing than bitcoin? Find out the benefits, both to the investor, and to the world, of making impact investments into venture capital, and the drawbacks of investing in bitcoin.
Read article5 min read
Why EIS might be a better choice than an ISA for your next investment.
Find out what makes EIS stand out as an alternative to investing in an ISA.
Read article3 min read
Did you know, female-led startups perform better?
Numerous studies have shown that, on average, startups with female founders perform better than their solely male founded counterparts.
Read article3 min read
3 investing lessons with super angel Peter Cowley.
Super angel Peter Cowley discusses startups, angel investing and what to look for in an investor-founder relationship with SyndicateRoom Founder Tom Britton in the regular podcast, Angel Insights.
Read article5 min read
Is EIS the new best-in-class investment for retirement and pension planning?
Find out whether investing in EIS is a better option for retirement planning that traditional pensions.
Read article3 min read
Access EIS investments for May 2021
See which innovative new startups SyndicateRoom and its super angels backed in May 2021
Read article