Capital Gains Tax

Capital Gains Tax (CGT) is due when you dispose of something that has gone up in value, although there are many exemptions.
With careful planning and good advice, you can make a significant difference to the amount of CGT that you have to pay after the sale.
Our tax consultants can help you with this, to reduce your tax bills so that you are paying the right amount on investment gains.

Entrepreneur’s Relief

If you are disposing of a business or part of a business, then you may qualify for Entrepreneur’s Relief.
In this case, it is very important to get advice early on in a transaction so that you can benefit from this relief when it is available.

Holdover Relief

This relief allows the disposal of certain assets as gifts, such that the gain, that would usually be taxable at the point of transfer, is deferred until the recipient of the gift sells the asset. This means that the person on the receiving end is deemed to acquire the asset at the original cost that the donor paid for it.
Rather than just completely removing the capitals gains from the asset, this just defers it. If the asset is then sold for the market price it will have gains to pay on it.

Rollover Relief

Business asset rollover relief allows CGT to be deferred on the disposal of an asset as long as it is replaced by a qualifying asset costing the same or more.

Principle Private Residence Relief

If a house has been your main or only residence throughout your ownership, it may benefit from full relief from CGT.
However, if you have let the property or used the property for business or commercial purposes then CGT may still be chargeable.
There are other situations too where it may also be chargeable, especially if you own more than one house and if you have been absent in your ownership. We recommend that you seek advice early on so that you can determine if you qualify for relief so that you pay only the right amount.
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