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Planning & Strategy

CAPITAL GAINS TAX

Capital Gains Tax (CGT) is a tax on the profit you make when you sell an asset. Careful planning of capital asset disposals to utilise your annual personal CGT allowance is essential to minimise your CGT liability. Our advisors work with you to find the best solutions to manage your asset disposal:

  • Reporting via Self-Assessment
  • Considering available Reliefs
  • Plan around the disposal to minimise tax

INHERITANCE TAX

Inheritance Tax (IHT) is charged on assets leaving your estate, whether in your lifetime or on your death, but exemptions and reliefs are available.

Simple measures taken to use those reliefs and exemptions can drastically reduce and often eradicate an IHT bill allowing more of your hard earned assets to pass to your loved ones.

When planning effective IHT savings, we give consideration to:

  • The use of trusts where appropriate
  • Planning in respect of the family home
  • Maximising the use of the nil rate band
  • Ensuring your Will is tax efficient
  • Considering lifetime gifts and annual allowances
  • Ensuring pitfalls are avoided e.g. Gift with Reservation of Benefits
  • Considering Business and Agricultural Property Relief

case study

Case Study

We were asked to review the estate planning for a successful property owner with assets in excess of £10m.   Through restructuring of debts and assets we were able to reduce the value of the estate by £6m. When seven years has passed from the restructure, his tax saved will be £2.4m.  He was also able to maintain control of the estate and continue to enjoy the income produced by his property portfolio.

Case Study

Our client approached us to act following the death of her husband. We reviewed the estate and the taxes payable and were able to identify assets that would qualify for reliefs and exemptions.  We were also able to recommend alterations to the dissolution of the estate, which were agreed by all the beneficiaries, which would ultimately save tax over a much longer term.

TAXATION VIABILITY REPORTS

It is often the case that a client will require some assistance in determining the tax treatment applying to their specific industry, type of income or specific costs incurred.  In such instances we are engaged to prepare a report into the matter which will form the basis of future business decisions.

Case Study

Our client approached us for advice on purchasing an existing property letting business and the associated taxation issues.  We were able to determine that the sale qualified for some VAT exemptions that, after representations were made to the sellers’ solicitors, saved VAT and Stamp Duty Land Tax.  We were also able to give advice on the issues surrounding the conversion of the building for residential use and made recommendations that would reduce the overall tax burden.

Case Study

We were approached by a business which was entering into a joint venture, operating in an industry in which they were unfamiliar.  We were able to identify the expenditure that qualified for tax reliefs and VAT that could be recovered, and identified all future tax charges and the potential consequences of generating income in this new market.  We were also able to identify the registrations that were required to make the company compliant and avoided any penalties for failing to comply.

BUSINESS SUCCESSION PLANNING

For some of our clients, the most important tax issue that they face is the potential tax charges that may be incurred on exiting a business and if the taxes payable will make exiting prohibitively expensive.

We frequently advise on tax efficient ways to exit a business and dispose of the connected assets.

Without careful planning, reliefs can be restricted or even lost.  There are also numerous pitfalls around introducing new and removing existing generations from family businesses that can prove very costly.

Case Study

Our clients were reaching retirement age and wanted to pass the shares in the company to their children, who were now working in the business. The new shareholders did not have enough money to pay the market value for the shares but the company had significant cash reserves.  We were able to agree with HMRC that the company would purchase and cancel the shares from the existing shareholders, using the cash reserves of the company.  We were also able to ensure only 10% Capital Gains Tax was payable instead of the 32.5% income tax that would have been payable, if they had taken the accumulated profits by way of a dividend.

Please get in touch if you would like more information or to arrange a call back.

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