Capital Gains
Tax Advice
The Personal Tax Centre is a small, friendly, owner managed firm of chartered
certified accountants
serving small businesses, and private individuals dealing with
capital gains tax on the profits on the sale of buy to let houses, second homes, commercial property,
businesses, shares and investments and all other tax issues.
For a free telephone consultation, a quote or to have accounts prepared for capital gains tax, please phone Stephen Maslin on 0845 1800810 NOW!
Capital Gains Tax Advice
There is now a new 18% flat-rate of CGT. To replace the withdrawal of business asset taper relief and any associated accrued indexation a new relief (entrepreneurs’ relief) was announced. This new relief provides that gains on disposals of qualifying businesses and shares up to a value of £1m would be taxed at an effective rate of only 10% rate.
The annual allowance has now increased to £10,100, and it is after this that the 18% rate will apply.
Here are a few examples:
A person buys a property to rent out in September 2004 for £115,000, in May 2009 it was sold for £200,000. The profit of £85,000 is reduced by the annual allowance of £10,100 to £74,900. It is this amount that attracts the 18% tax charge. So £13,482 will be payable irrespective of whether the persons marginal rate of tax is at the lower or the higher rate.
Now take a sole trader who sells his business and has a profit of £250,000. This is subject to the new entrepreneurs relief. To get the 10% effective rate the profit of £250,000 adjusted by the fraction 4/9ths which gives a revised profit of £138,888 which at 18% gives £25,000.
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