Capital gains tax applies on the disposal of assets, such as property, land, and shares.
When considering your liability to capital gains tax, we will always make sure you can get the most out of the available allowances, reliefs, and deductions.
Where possible, it is good practice to obtain advice prior to selling or disposing of your assets as with careful planning it may be possible to reduce, defer, or avoid capital gains tax due by taking action in advance. This is particularly important if you intend to leave the UK or arrive from overseas.
We can also prepare the necessary paperwork to report gains and losses to HMRC, so you can rest assured that you have met all your compliance obligations.
Entrepreneurs’ Relief (often abbreviated to “ER”) is a valuable capital gains tax relief which may be available when you sell all or part of your business.
Provided that the relevant conditions are met, the effect of the relief is to reduce the rate of capital gains tax to 10% on the entirety of the gain.
As this is such a precious relief for entrepreneurs, PD Tax recommend that regular reviews are undertaken to ensure that you and your business meet the necessary requirements. We can advise you on whether you qualify for the relief, and if not, recommend steps you can take to ensure that you are eligible on a future sale.