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Capital Gains Tax
A little planning can take a lot off your tax bill
Capital Gains Tax (CGT) is often overlooked by most investors as something which will not affect them. However, estimated figures for 2007/08 tax year indicate that HM Revenue and Customs will be collecting over £4.7 billion in CGT† for the last tax year, almost three times the figure for 2002/03.
What is it?
Capital Gains Tax is payable on any profit you make from the sale or disposal of assets. These could include property, shares, unit trusts, funds and even antiques. You may also be liable if you receive compensation for a damaged asset.
However, there are ways to minimise the impact. First there are some exemptions – including, for example, your main residence and your car. Assets worth less that £6,000 are not liable either. On top this, there is an annual allowance, under which gains are CGT free, regardless of where they came from.
Second, there are some specific investment accounts which can be used to shelter assets from, or defer liability for CGT – ISAs and pensions, for example, or venture capital trusts.
Your own plan
Despite the exemptions, the widening of share ownership and buy-to-let has almost doubled the number of CGT bills in just the last five years†. If you are investing your money in either of these, you should make sure you consider your situation – just to be sure – or you could be hit unexpectedly.
Our Tax Planning Service is designed to help you make a full assessment of your situation. By comprehensively reviewing your assets, your objectives and your liabilities, we can help you minimise your liability to all taxes, not just CGT.
For more information, without obligation, call us today on 01443 410646
