Taxation Services

Capital Gains Tax Planning

You are entitled to £8,800 of net gains free of tax (2006/07). We can also help you plan disposals to make use of the CGT exemption and minimise your liability to 40% CGT. Things to think about are
  • Consider deferring disposals until after 5th April to delay CGT payment by a full year and maximise taper relief.
  • If you intend to retire from business in the next few years, plan ahead to minimise CGT on disposal of your busines or family company.
  • If you have more than one home, consider making or revising an election to determine which one will qualify for the CGT exemption.
  • Claim losses on assets that have become worthless.
  • It is better to realise gains in a year in which income is relatively low than to pay CGT at 40%.
There is also an option to consider EIS deferral relief, which allows you to defer gains on disposal of any chargeable asset against investment in new ordinary shares in a qualifying unquoted trading company. Also, you may consider VCT deferral which operates in a similar way but allows you to 'pool and spread' your investment with other investors, and via investment managers. You can rely on Pierce's multi-disciplined teams of experts to reduce your present and future tax liabilities through timely planning, offering a wide range of specialist services that provide flexible personalised solutions with access to up to the minute advice on new tax legislation. To complement our taxation services our in-house Independent Financial Consultants can provide you with strategies and products to manage your business risk and maximise your wealth.