Capital Gains Tax (CGT) planning can help you to avoid significant charges when you come to sell assets loaded with gains.
CGT strategies are suitable for people with assets exceeding £1m in capital gains, or exceeding £500k in realised capital gains.
When combined with your annual taxable income, gains that fall within your income tax band will be charged at 18%; gains above your income tax band will be charged at 28%. (On gains made on or before 22nd June 2010, a flat capital gains tax rate of 18% applies). Gains that qualify for Entrepreneur’s Relief are charged at the reduced rate of 10%. Finally, every individual has a tax-free allowance (Annual Exempt Amount) of £10,600.
Capital gains and capital losses are calculated separately and it is possible to offset the latter against the former, not only within the current tax year but also in the years that follow. This is just one of the ways in which intelligent tax planning can greatly reduce your charge.
Some of the ways in which we can help include introducing strategies that create capital losses and bringing the base cost of your asset up to current market values.
If you are planning to dispose of your assets, or have already done so within the current tax year, contact us today.