In this Capital Gains Tax edition of the PayLessTax newsletter, we look at the following issues:
- A Relief for Rollover – Rollover relief (RR)can potentially be claimed where a qualifying asset (old asset) used in the trade is disposed of resulting in a chargeable gain and the proceeds are deemed to be reinvested into another qualifying asset (new asset) which is also being used for the trade.
- Property Think Ahead – If you are contemplating disposing of a residential property, either in the short term or medium term, it is wise to pause and think about the capital gains tax consequences of doing so.
- Don’t miss out on the 10% rate – If you are self-employed and sell your business after 2 years or more, the gain arising on that disposal may only suffer capital gains tax at 10% rather than 20%. The same could apply where a person gets rid of shares in their personal trading company.
- Pay More Tax to Save Tax – Unless you are feeling altruistic you would probably think it mad to make an election to pay more tax. However, in one particular case, doing so may result in you saving more tax, and sometimes national insurance, in the long run!
If you have any questions or need personalised advice on these topics, don’t hesitate to get in touch with our team. We’re here to help you make the most of your business opportunities.