Capital gains tax
Capital gains tax is charged in respect of gains made from selling, or otherwise disposing of assets. Some common assets which maybe subject to capital gains tax are;
Goodwill associated with a business that is run by a sole trader or partnership.
Some types of residential property.
Commercial property let or otherwise, including property used by your own business.
For a basic concept, capital gains tax can be very complex. There are many exceptions and adjustments which may lead to a significant reduction in the tax payable and effective tax planning can lead to substantial tax savings.
From time to time we have been requested to review planning strategies prepared by other accountants. On one occasion we reviewed the documents prepared by one of the 10 largest accountancy practices in the country, we did not agree with their views and on ultimate disposal of the asset our opinion was supported by H M Revenue & Customs. The result was a tax saving of over £700,000 for our new client.
If you are a business owner or individual considering selling an asset or business, we can advise on any reliefs that may be available and of the possible capital gains tax charges that may arise.