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Capital Gains
Capital Gains Tax liabilities can arise on the disposal of assets either to third parties, to family members or into vehicles such as trusts or limited companies. As well as calculating liabilities after transactions, we also advise on planning for these liabilities and setting up business arrangements so as to minimise exposure.
Capital Gains Tax often interacts with other taxes such as Corporation Tax, Stamp Duty, VAT and Inheritance Tax planning. Gains are reported either on personal Self Assessment Returns or Corporation Tax Returns.
Our expertise shows its true benefit when negotiating with H M Revenue & Customs regarding valuations used in calculations. The valuation of, in particular, company shares is extremely subjective and it is essential to take our advice before entering into a transaction. Valuations will be fundamental to the calculation of Capital Gains Tax liabilities where either a valuation is needed at March 1982 or an asset is transferred other than at arms length – for example to a connected person. From the 2008/09 tax year the disposal of any asset originally acquired before March 1982 will necessitate the obtaining of a March 1982 valuation.
Examples of areas in which we can advise regarding Capital Gains Tax calculations and planning include: - Principal Private Residence Relief
- Transfers within a Corporation Tax Group
- Gifts or sales at under value to connected persons
- March 1982 valuations and negotiations with H M Revenue & Customs
- Disposals of minority interests in private limited companies
- Pre 5 April 2008 disposals and Indexations and Taper Relief
- Transfers to you spouse and associated tax planning
- Corporate structure and recommended vehicles in which to hold assets
- Deferring gains through holdover into new assets
- Business disposals and associated planning opportunities
If you are considering buying or selling an asset then contact us before the transaction to ensure than your liabilities can be minimised both now and in the future. |
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