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      Reducing Capital gains tax

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      free Initial consultation - Call Now :0208 914 8887

      Reducing Capital gains tax

      Don't allow capital gains tax ruin your wealth

      Property prices in London have gone crazy in the last 10 years. More and more individuals like you are facing the reality of paying capital gains tax when you sell your capital asset.

      The best thing you can do is, get us in the loop before you consider selling your capital asset so that we can plan how to minimise and manage your eventual capital gains tax bill. But even if you have sold your asset and incurred capital gains tax liability, we can do tax planning to minimise if not completely eliminate your tax bill.

      There are a number of ways by which we can help you minimise if not completely eliminate your capital gains tax bill. Some examples of the strategies we can use to minimise your capital gains tax liability are:-

      Making pension contribution

      You can make a pension contribution of up to £40,000.00 a year or 100% of your salary if it is lower to give you a big tax relief.

      Postpone sale of assets

      Depending upon the overall financial situation of you and your family, it may be better to hold rather then sale assets.

      Buy second property as gift to children using trust

      You can buy another property and subsequently dispose it without having to pay any CGT, by setting up a trust and naming your children as beneficiaries. When you come to sell the property as trustees, you can claim the exemption for the whole period of ownership as long as it has been occupied by at least one of the named beneficiaries at all times.

      Buy assets jointly with your spouse or civil partner

      Transfer between spouses is exempt from CGT. Therefore, assets can be transferred between husband and wife or civil partners so that both annual CGT allowances are used. This effectively doubles the CGT allowance for married couples and civil partners.

      Principal private residence relief

      Your main home is free of CGT, and you can often choose which of your properties qualifies as your main residence.

      Lettings relief

      Lettings Relief allows up to £40,000 of capital gains tax relief for any of your property that is let out, but has also at some point been your main residence.

      Investing in Enterprise Investment Schemes (EIS)

      If you are a higher rate taxpayer, you defer the liability until you retire and become a basic rate taxpayer, or continue rolling over the liability right up until death. Then EIS shares would be exempt from inheritance tax and the CGT liability would dissolve.

      Preserve all property expense invoices

      Any major expenditure in a property like fitting new bathroom or kitchen can be claimed as cost of improvement when selling it. You need to preserve invoices of every major expense incurred for the property.

      Cash in assets each year up to the CGT allowance

      If you have large no capital assets, you should try and use your annual CGT allowance. If not utilised in a tax year, it cannot be carried forward to next year.

      To find out, how we can minimise your capital gains tax, why not contact us on 0208 914 8887 for a Free, No Obligation Consultation. Your financial strength is our success.

      (It takes less than 1 minute)

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      Allenby Accountants
      35, Sweetcroft Lane
      Uxbridge , London UB 10 9LE
      Phone: 0208 914 8887
      Fax: 208 914 8889