Capital Gains Tax & Planning

CGT can apply when you sell or when you even gift an asset (property, businesses, shares or other personal possessions).

The CGT legislation is complex and frequently changes, hence, if you are planning to sell or gift any of your assets you should consider pre-transaction planning, to avoid a surprise tax bill.

From April 2020, where capital gains tax is due on the disposal of a UK residential property, a capital gains return has to be submitted to HMRC within 30 days from the completion date and the tax due will have to be settled by the same date.

There are various reliefs and exemptions that could be exploited to minimise or wipe out your tax bill. Professional advice should always be sought to make sure that you have considered all your planning opportunities.

How can we help?

Our experienced and professional team can estimate any future tax liability on the disposal/transfer/gift of your assets, provide you with a dedicated strategy to mitigate tax in accordance with your circumstances and make sure that you comply with your legal reporting and compliance obligations.

As part of our expertise, we can advise you on:

• Optimal transfers between family members to minimise a future tax liability on the disposal of your assets, by maximising your tax reliefs and allowances.
• Favourable disposal of your investments and assets before arriving to the UK to avoid any unnecessary UK tax liability and any temporary non-residence tax rules and implications.
• Tax Exemption on the sale of your main and only residence including Private Residence Relief, Letting Relief and Deemed Occupancy Periods.
• Gift Hold-Over Relief on transfer of business assets, including shares in your own trading company to family members.
• Deferral of CGT on the sale of business assets by claiming Business Asset Rollover Relief.
• Your entitlement to Entrepreneurs’ Relief, hence reducing the tax payable on gains made on disposal of your qualifying shares to 10%.
• Your entitlement to Investors’ Relief and the ability of reducing the tax payable on the disposal of unlisted shares to 10%.
• Optimal timing for the purchase or disposal of your Enterprise Investment Schemes (EIS) and Seed Enterprise Investment Scheme (SEIS) Investments to take full advantage of your disposal relief and reinvestment relief.

Whilst some of the reliefs can be generous, qualifying for them is not always as straight forward as it seems. Capitax Financial can provide you advice relating to CGT position and your entitlement to any available reliefs.

If you require any further information, please contact us.