4th April 2011
They say you learn something new every day. I have always wondered why the tax year finishes on 5 April each year – why don't we have it aligned with the calendar year like many other places around the world?
I have just Googled it and the answer is apparently something to do with the change from the Julian to the Gregorian calendar in 1752. I also discovered that Income Tax was a temporary tax introduced to fund the Napoleonic wars …… I'm no historian by I am quite certain we aren't still fighting the French!!
These examples probably help to explain why the UK's tax system is so complicated! It is an absolute minefield for the layman to navigate through. In that regard, very few people know how Capital Gains Tax (CGT) works and the techniques you can use to mitigate your CGT bill.
There are some particular issues with property related CGT mitigation which are only for those lucky enough to own more than one home (as many MPs do!). However, for those with gains from other investments it is just as important to plan your strategy.
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