Fidelity International is urging anyone with investments to take advantage of their capital gains tax (CGT) free allowance.
The company's own research shows that 91 per cent of people either do not understand CGT or believe it is not relevant to them.
At present the tax-free allowance is £10,100 and Paul Kennedy, head of tax and trust planning at Fidelity International, believes CGT is misunderstood and insists there are benefits for everyone.
He said: "For those who pay income tax at 40 per cent or higher the rate of capital gains tax at 18 per cent may look attractive, but the key for most people is wherever possible to use their tax free allowance.
"Don't confuse these two issues - the rate of tax applies only where a gain exceeds the annual allowance."
Another tax benefit available to investors is the individual savings account (ISA) allowance of up to £7,200 (£3,600 in cash), rising to £10,200 (£5,100 in cash) for anyone born before April 5th 1960.
Recent products include Aldermore's one-year fixed rate ISA offering 3.05 per cent annual equivalent rate (AER) interest and a two-year version offering four per cent.
Investors urged to use capital gains tax free allowance
Investors urged to use capital gains tax free allowance
Tue, 26 Jan 2010
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