With the ever-increasing ‘second home ownership’ generation, and the ever-growing asset base of the UK, capital gains tax (CGT) is becoming a more regular (and unwanted) feature in taxation matters for both individuals and companies. There are many reliefs available, and with careful pre-transaction planning taylorcocks can ensure that any exposure to capital gains tax is minimised.
With this in mind there are various simple planning techniques that can be used, and that are often overlooked:
- transferring assets between spouses to take advantage of each individual's capital gains tax annual exemption
- entrepreneurs relief is available on the disposal of certain shares, securities and business assets. This effectively reduces the rate of capital gains tax payable on qualifying disposals
- there are different reliefs available to defer the capital gain arising on certain assets
- reliefs such as rollover and holdover can be applied when certain qualifying business assets are disposed of, and certain qualifying business assets are acquired within a qualifying time period
- gift relief effectively allows a chargeable gain to be deferred (‘held over') and passed to the recipient of a gift
We are able to advise on this complex issue to ensure you receive optimum relief when you dispose of your capital assets.