Capital Gains Tax Planning

Capital Gains Tax is encountered in many circumstances in your life whenever you sell or give away a taxable asset. The rate will depend on your circumstances and the intricacies of the Capital Gains Tax legislation are great. In the UK, the main rate of Capital Gains Tax is 28%. But there is also the 10% rate for business assets which qualify for Business Asset Disposal Relief (formerly known as Entrepreneurs’ Relief).

Business Asset Disposal Relief is just that. If an entrepreneur disposes of their interest in a trading business, then the tax rate is 10% on the first £1 million (previously £10 million) of lifetime gains realised by each individual, subject always to meeting the detailed conditions for the relief.

How the proceeds of sale are reinvested may also defer any liability to Capital Gains Tax. Deferral relief is available for investments qualifying under the Enterprise Investment Scheme. Rollover relief is available for the reinvestment of sale proceeds of trading assets and holdover relief may allow the capital gain to pass from donor to donee.

There are also the exemptions and reliefs which result in no tax being payable, the best known of which is principal private residence relief for the sale of your home.

Our in-depth experience will help you optimise your position and help you maximise your after tax sales proceeds.