Capital Gains Tax (CGT) is wide-ranging and can apply to the disposals of property, businesses, shares and personal possessions. For these purposes disposing of an asset does not just mean selling; it also covers gifts, transfers, and even swaps of assets can be caught.
The CGT legislation is complex and provides for many reliefs and exemptions which can help reduce or even wipe out your liability. We can talk you through these in plain English, prepare computations and calculate any tax that will be payable.
Nobody likes a surprise tax bill and with our help and guidance, these surprises can be avoided. We can work with you right from the beginning, providing advice on the structure and timing of the disposal, through to the end when you report the disposal on your tax return.
How can we help?
- Planning how assets should be owned to maximise CGT reliefs between a husband and wife or across a family.
- Planning how to benefit from tax exemptions in connection with the sale of property including Principal Private Residence Relief and Lettings Relief.
- Maximising Entrepreneurs’ Relief and Rollover Relief and avoiding common pitfalls. Whilst the reliefs can be generous, it is not always as straightforward as it seems to qualify.
- Maximising Capital Gains Deferral Relief in association with Enterprise Investment Schemes (EIS) and Seed Enterprise Investment Scheme (SEIS). Planning the timing of an investment or a disposal is important to ensure the tax relief is secured in the relevant tax year.
- Pre and post-residence planning for both UK and non-UK domiciled clients. Individuals who are coming to or leaving the UK need to know how their movements can result in unfortunate UK CGT charges.
- Planning the transfer of assets on a divorce situation to avoid an unnecessary CGT expense.
- Advising on gifts of assets between family and to charities. It is important to consider how a disposal for CGT will be treated from an Inheritance Tax (IHT) perspective.
- Negligible value claims including setting capital losses against income.