Capital Gains Tax, not a 'capital' idea!

Capital Gains Tax affects us all, businesses and individuals alike.

The continually changing rules of recent years have been such, that favourable reliefs available to businesses can be lost if there isn't sufficient attention to detail.

Take for example, taper relief. This is a relief that can reduce the tax payable on the disposal of business assets (or shares in a trading company) to 10% or less. However, if there has been a change of business activity (such as the investment of surplus profits) within the qualifying period, relief can be lost. An easy mistake to make for the unwary.

But such examples are not limited to businesses. The increases in property values means that the exemption from tax for your principal private residence has become even more valuable. But did you know, that if you have two homes, you must make an election within two years of purchase as to which one should qualify for the exemption?

Just as with all other taxes, it is essential proper planning is undertaken to mitigate your tax liability. For help in reducing your tax burden, please contact Bob Churchill, Head of Taxation, on 01622 213745 (email bob.churchill@dsh.co.uk.)