Plan to save
Let us create a tailored strategy to mitigate or defer your capital gains tax, while we safeguard your tax and legal compliance.
Capital gains tax
Capital gains tax (CGT) is payable on the gain when you dispose of:
- Most personal possessions worth £6000 or more;
- Shares that are not held in an ISA or a PEP;
- Property that is not your main home;
- Your main home in some circumstances, such as if it hasn’t always been your main residence; you are using it for business; it has a significant amount of land; or you have let it at any time.
Capital gains tax rates 2017/18
These rates are charged on the gain above the current annual threshold of £11,300 (2017/18 rate). To reduce the amount of tax payable, we can help you identify and claim all available reliefs.
| Applies to: | Basic rate tax payers | Higher rate tax payers |
|---|---|---|
| Individuals for most assets | 10% | 20% |
| Residential property not eligible for Principal Private Residence relief | 18% | 28% |
| Shareholders eligible for entrepreneurs’ relief (lifetime gain limit of £10m) | 10% | 10% |
| Investors eligible for investors’ relief (lifetime gain limit of £10m) | 10% | 10% |
Our team at WMT are on hand to advise you on your obligations and to create a tailored strategy for you to mitigate or defer the payment of capital gains tax, while safeguarding your tax and legal compliance.
CGT planning
We help you make tax efficient savings through careful planning so that you can:
Secure a reduced 10% capital gains tax rate through entrepreneurs’ relief or investors’ relief.
Claim all applicable tax reliefs, when you replace business assets, incorporate or disincorporate, gift business assets or give other gifts, and elect your principal private residence.
Claim all valid tax deductions, such as professional fees and enhancement expenditure.
Structure investments for tax efficient income and longer term gains.
Defer capital gains tax liabilities by investing in an Enterprise Investment Scheme (EIS).
Transfer assets into trusts.
Transfer business assets between family members in a tax efficient manner.
Advise you on CGT implications if you are a ‘non-resident’ for UK tax purposes.
Keep you informed on the changes in legislation and capital gains tax rates.
CGT planning can have an impact on areas such as personal tax return, inheritance tax, and remuneration planning. By looking at your overall tax situation, we can give you the full picture and advise you on the best available options.
Get in touch with our tax team to find out more about how we can help you.