For example, if you bought shares in your employer's company on 5 April 2000, and sold them before 6 April 2002, this would count only as one year's ownership. A higher-rate taxpayer would then pay tax on the gain at 35 rather than 40 per cent. But if the shares were sold after 5 April, the higher-rate taxpayer would pay an effective rate of just 10 per cent on the gain, assuming tax rates stay the same.If you are aged over 50 and entitled to capital gains tax retirement relief on the sale of your business assets, talk to an adviser to find out if a disposal before or after 5 April would be best. This is because retirement relief is being phased out and tax relief will be less attractive after 5 April. If you are thinking of making a gift, such as assets that qualify for business or agricultural property relief, it may be worth doing so before 5 April in case some of these tax breaks are reduced or abolished. Have you used your annual capital gains tax (CGT) exemption for this tax year? At the moment, £7,500 worth of gains can be realised tax-free If you haven't used your allowance, try to ensure you do.

You can no longer "bed and breakfast" shares – sell them and buy them back immediately – but you could arrange for your spouse to repurchase the shares or, if you have a self-select individual savings account (ISA) or personal equity plan, for this fund to repurchase them.Capital losses brought forward as a result of losses on shares or other trans- actions in previous years need only be used to bring your gross gains down to the £7,500 threshold. If you have made losses this year, try to realise gains equal to the sum of the losses plus the CGT allowance, so you do not waste your exemption You might consider taking out a tax-free plan such as an ISA; £7,000 can be invested in 2001/2002 and your spouse can have one as well. If you have realised capital gains which create a tax liability, consider putting money in an enterprise investment scheme or venture capital trust (see back page), which enable CGT deferral and income tax relief. Don't forget: the merits of the investment are more important than the tax breaks.

If one spouse works and the other is either non-working or paid a lot less, consider transferring all your investments to the lower earner. This could save money next year as you may be shifting income taxed at 40 per cent to a spouse who pays tax at 20 per cent. Where possible, try to complete a property purchase before 5 April in case stamp duty increases. If you hold shares in a family business, work in the firm and are in a position to influence policy, consider the effect of paying dividends on the overall tax charge. Should you pay a dividend, which does not carry national insurance, or vote yourself a bonus which does? You may need professional help to work out the most cost-effective route.If your company is caught by the IR35 legislation because you are using it as a vehicle to avoid being treated as an employee, remember that the company is ignored for tax purposes and you will have to pay PAYE on the fees from your "client".Whatever you do, never undertake transactions solely for tax purposes. And where appropriate, seek expert help.Howard Paskins is a tax partner at Smith & Williamson, the independent professional and financial services group.