By contrast, the Individual Savings Account (ISA) continues to stand firm as one of the most effective tax shelters available. Investments within an ISA grow free from both Income Tax and CGT, and withdrawals remain entirely tax-free. Over time, this creates an extremely powerful compounding effect.

However, the annual ISA allowance – currently £20,000 per individual – operates on a ‘use it or lose it’ basis. Once the tax year ends, that year’s allowance is gone for good.

This leaves many investors with a familiar dilemma. To fund their ISA allowance each year, they may need to sell existing investments held outside the ISA – triggering a capital gain and potentially a tax bill in the process.

At first glance, paying tax voluntarily seems counter-intuitive. Yet in practice, this can be a short-term sacrifice for long-term efficiency. By realising some gains now, paying the tax at current rates, and gradually migrating assets into the tax-free ISA environment, investors can limit future exposure to higher CGT rates and further allowance cuts.

With markets still providing selective opportunities and the political climate hinting at further pressure on capital taxes, now may be an opportune moment to review your strategy. The Autumn Statement could again alter the CGT landscape – but history shows that governments rarely increase tax allowances.

Our consistent message is therefore simple: continue to use your ISA allowances wherever possible. Even modest, regular top-ups can make a significant difference over time, especially when combined with disciplined tax-aware portfolio management.