Qubic Tax - Changes in legislation and uncertainty about future tax rates mean there is more need than ever to plan around this area.

Capital Gains Tax

With the recent changes in CGT legislation, coupled with uncertainty about future tax rates, there is more need than ever to plan around this area in order to give more certainty.

There is enormous scope to minimise the Capital Gains Tax (CGT) payable on an asset disposal and generally the key to successful and optimised planning is to be in a position to advise before a transaction takes place. Of course this is not always possible and our aim is to identify the best possible outcome in every scenario, taking all circumstances into account.

Once we have considered the scope for reliefs and exemptions, our direct approach to planning, whether for corporate vehicle or a personal perspective (including shares), considers offshore structures (including trusts), partnerships and foundations as appropriate.

With the increase in the rate of CGT to 28%, not surprisingly there has been an increase in the demand for CGT mitigation. The focus tends to be to:

• Maximise reliefs and exemptions in the first instance.
• Optimise the use of profits subject to CGT as opposed to income tax.

In addition, planning around principal private residence relief can be very rewarding and many do not realise how much scope exists to use this valuable relief. With growing numbers of those in the UK owning second properties at home and abroad, a timely election could make all the difference to CGT exposure. Letting exemptions could also apply to mitigate the ultimate charge.

There are numerous tax strategies available to shelter disposals from CGT. Tax counsel review is sort whenever appropriate.

For more information, please contact 0191 2322001 or email info@qubictax.com