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 some careful pre transaction planning we can ensure that any exposure to capital gains tax is minimised.
There are various techniques that can be used, and we are able to advise on this complex issue to ensure that maximum relief is obtained where available. Deferral of the gain (by utilising rollover or holdover relief) may be possible in some instances, though this may not necessarily be the right course of action, and there are constraints on both the type of asset and the timeframe. Gift relief can be claimed when gifting certain assets away, although interaction with inheritance tax must be considered.
The relatively new Entrepreneurs Relief may also be available for business assets and here timing is crucial.