Capital Gains Tax
The widespread use of ISAs to hold quoted shares, together with the annual capital gains tax exemption of £9,600 (for 2008/09) has ensured that capital gains tax (CGT) is not often paid.
However, potential CGT liabilities tend to be substantial when an investment property, family business or farm is sold or passed on, or when share options are exercised. Early and careful planning can make a significant difference to the capital gains tax liability.
For disposals after 6 April 2008, generally speaking CGT is chargeable at 18% for non-business assets and 10% for business assets and shares in family companies, although for the latter there are several conditions that have to be met for the lower, 'entrepreneurs relief' rate to apply.
Where sizeable taxable gains remain, they may be reduced or deferred in a number of ways, including:
- Roll-over relief
- Hold-over relief
- EIS/VCT Deferral relief
- Gifts to Charity or for national purposes
If you think you may be liable to Capital Gains Tax due to the sale of a property or shares, please contact us Enquiry Form for some initial advice.