CAPITAL GAINS TAX (CGT)

Companies are chargeable to corporation tax on their capital gains less allowable capital losses.

Indexation Allowance

In order to counteract the effects of inflation inherent in the calculation of a capital gain, an indexation allowance is given. However the allowance is not allowed to increase or create a capital loss.

Timing Of Disposals

Where possible gains should be made in periods where profits are taxed at only 10% or 20%, as opposed to the full rate of 30%.

Consideration should therefore be given to the timing of the disposal and the delay of a sale may be advisable.

Purchase Of New Assets

It may be possible to avoid a capital gain being charged to tax if the sale proceeds are reinvested in a replacement asset.

The replacement asset must be acquired in the four year period beginning one year before the disposal and only certain assets qualify for relief.

Other areas of business tax
Transfer pricing
Offshore tax havens
Inheritance tax
Trusts
Tax evasion

For a free initial consultation contact now