Capital Gains Tax (CGT) mitigation


 
Payable at the taxpayer’s marginal rate of tax, capital gains tax may be deferred indefinitely, and tax paid on gains realised in the previous three years may be reclaimed from the Inland Revenue, WITH INTEREST.

Forward Planning and the use of suitable Trusts and Tax Law may allow an individual to avoid the Capital Gains Tax liability altogether.

It is possible to defer the Capital Gains Tax Liability whilst at the same time taking advantage of Business Property relief (BPR) and thus reducing the potential Inheritance Tax liability.

Strategies for Capital Gains Tax Mitigation

Some potential strategies for reduction of tax are listed below, but please contact us direct to discuss your own personal situation.

  • Investment into Venture Capital trusts for deferral of Capital Gains Tax on realised gains, with the benefit of tax free growth
  • Investment into Enterprise Investment Schemes and Portfolios for deferral of Capital Gains Tax. Such an investment will also benefit from tax-free growth and the qualification for Business Property relief.
  • Bespoke Reinvestment Relief Companies are designed to qualify under the CGT reinvestment Relief rules and clients may retain 100% control of share-ownership.
  • Base Cost Step Up may be used to step-up the base cost of an asset pregnant with capital gains by use of an offshore trust in order to dispose of that asset free of any gains. The UK resident may then have the proceeds of that sale with no liability to CGT.
  • Incorporation Relief may be available by transferring a property letting business to a company for shares without giving rise to CGT, and claiming Rollover Relief (under s162 TCGA 1992), it is possible to eliminate all tax liabilities on the eventual sale.

Tax mitigation home | Income tax mitigation | Capital gains tax mitigation           Inheritance tax mitigation | Corporation tax mitigation

Terms & Privacy