Capital Gains Tax
Capital Gains Tax (CGT) has a number of different applicable rates depending upon the asset involved. Reliefs against the tax are very valuable and often advice will focus on protecting that relief to ensure that any gain is outside the scope of CGT.
The most common relief – Principal Private Residence relief – is often assumed. There is, of course, no tax to pay when selling your own home is there? Whilst mainly true, there are important rules that must be followed to make sure that is the case, especially if your property has a larger amount of land connected to it or you run a business from your home.
Entrepreneurs Relief on the sale of a business asset can similarly be assumed to be granted automatically on every disposal, but advice to ensure that you will qualify to pay a liability at only 10% on the gain should be confirmed before the sale has completed.
Records can be very important to establish allowable deductions. We will discuss the maintenance of information that can help maximise deductions against any future proceeds.