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Capital Gains Tax (CGT) - is a tax on the profit when you sell or dispose of something that has increased in value.
Capital Gains Tax allowances - You only have to pay capital gains tax on your overall gains above your tax-free allowance (called the Annual Exempt Amount). Capital gains tax rates of 10% and 20% introduced for disposals on or after 6 April 2016 do not apply to transactions involving residential property. Capital gains tax rates for these transactions remain at 18% and 28%.
|TAX RATES - INDIVIDUALS||2017/18||2018/19||2019/20|
|Standard rate for gains on residential property||18%||18%||18%|
|Higher rate for gains on residential property||28%||28%||28%|
|Annual Exempt Amount|
Entrepreneurs’ relief (ER)
Entrepreneurs’ relief (ER) - may be available for certain business disposals taking place on or after 6 April 2008 and has the effect of charging the first £10 million (from 6 April 2011) of gains qualifying for the relief at an effective rate of 10%.
The relief will apply to gains arising on a disposal of:
From 6 April 2019 the 12 month holding requirements stated above will be increased to 24 months.
A trading business includes professions but only includes a property business if it is a ‘furnished holiday lettings’ business.
Restrictions on obtaining the relief on an ‘associated disposal’ are likely to apply in certain specific situations. This includes the common situation where a property is in personal ownership but is used in an unquoted company or partnership trade in return for a rent. Under ER the availability of relief is restricted where rent is paid.
Business asset rollover relief and Gift Hold-Over relief
Business asset rollover relief - You may be able to delay paying Capital Gains Tax if you:
Business Asset Rollover Relief means you won’t pay any tax until you sell the new asset. You may then need to pay tax on the gain from the original asset.
You can also claim:
Gift Hold-Over Relief - You may be able to claim Gift Hold-Over Relief if you give away business assets (including certain shares) or sell them for less than they’re worth to help the buyer. Gift Hold-Over Relief means:
Tax isn’t usually payable on gifts to your husband, wife, civil partner or a charity.
Eligibility - The conditions for claiming relief depend on whether you’re giving away business assets or shares.
Registered office: 61 Friar Gate, Derby, Derbyshire, DE1 1DJ T: 01332 202660
Adrian Mooy & Co is the trading name of Adrian Mooy & Co Ltd. Registered in England No. 05770414
Registered to carry out audit work by the Association of Chartered Certified Accountants - auditregister.org.uk 8011438
61 Friar Gate Derby DE1 1DJ