Capital gains tax

Capital gains tax (CGT) is levied when assets that have increased in value, above an annual exempt amount, are sold or given away.

Basic rate taxpayers pay CGT at 18 per cent, rising to 28 per cent for higher rate taxpayers, so when planning the disposal of assets, it makes sense to seek expert advice to minimise liabilities.

For example, LJL Services can advise on the use of entrepreneur’s relief on the disposal of a business, which effectively reduces the CGT rate to ten per cent on gains accumulated during the owner’s lifetime. The relief also applies to gains on disposals of certain shares and assets associated with a qualifying company.

The lifetime allowance for disposals now stands at £10 million, making entrepreneur’s relief a valuable tool in tax planning.

We can also advise on exemptions to CGT, including the transfer of assets between married couples and civil partners and the profit on the sale of a principal residence. Other exemptions include gifts to charities, privately owned cars and personal belongings where the sale proceeds are less than £6,000.

And we can advise on maximising the tax efficiency of the disposal of a second home, shares or other property, such as antiques or jewellery, likely to be liable to CGT.

To find out more about how we can help you, or for a free, no obligation quote, please contact us.


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