Tag Archives: capital gains tax

Capital Gains Tax: What is considered a repair, and what is considered capital expenditure?

For the purpose of this blog, I will use examples of repairs and enhancements relating to residential properties as the examples will be relatable to many people and hopefully easier to understand. What is a repair? HMRC considers a ‘repair’ as the restoration and maintenance of pre-existing features of an asset by bringing the asset…

Year end tax planning potential: capital gains tax

Year end tax planning potential: capital gains tax

A phased reduction in the capital gains tax (CGT) annual exemption is on the horizon. Currently £12,300, the exemption falls to £6,000 from6 April 2023. A further reduction takes effect from 6 April 2024, when it drops to £3,000. The move is expected to raise an additional £25 million in tax revenue in 2023/24 alone,…

Inheritance tax to be simplified

The Office of Tax Simplification (OTS) have undertaken a detailed review of Inheritance Tax (IHT), which is perceived by many as a complicated tax. The government normally takes account of OTS recommendations and their report is likely to lead to future changes to the rules. We will keep you posted as the changes may necessitate…

Furnished holiday letting business is not a business for inheritance tax (IHT) relief

A furnished holiday letting business is treated as a trade for most tax purposes. For example, capital allowances are available on furniture, and CGT entrepreneurs’ relief is available on disposal of the business. However, a recent tax case has determined that a holiday letting business in Cornwall did not qualify for inheritance tax business property…

Must own 5% of ordinary shares for capital gains tax entrepreneurs relief

In order for a shareholder to qualify for capital gains tax (CGT) entrepreneurs relief on the disposal of their shares, they must be an officer or employee of the company (or group) and hold 5% or more of the company’s ordinary share capital and voting rights for 12 months prior to the disposal. The company…

3 things to know about tax when selling business assets

As a business owner, you may at some point be in a position to dispose of a capital asset, such as a share of a business or a property for example. However, more often than not, we find business owners perplexed by the different legislation surrounding selling capital assets. That’s why we’re on hand to…