Can I transfer money into an ISA and Premium bonds account to avoid paying CGT?

I have a GBP 82,300 capital gain. Can I transfer GBP 20,000 and GBP 50,000 into an ISA and Premium bonds respectively to avoid paying CGT on that money? The remaing GBP 12,300 is within my tax free limit.

Hi Marc

I like your thinking, but unfortunately you are unable to avoid paying CGT, in the way you suggest, if the tax due is as a result of selling an asset that was not already in a tax-free environment, such as an ISA.

Moving it into a tax-free investment like an ISA once the gain has been realised does not allow you to avoid the tax.

There are ways to roll over or mitigate up to 100% of a Capital Gain, which involves re-investing the proceeds into high risk investment vehicles. For the vast majority of people these investments are not appropriate and are a by-product of a very high risk investment, rather than the reason you should invest in the first place. Whilst these investments are regulated, they can frequently involve losses that a lot of people cannot afford to make.

Hope this helps

Jamie