Comments on: Capital Gains Tax - Now where?

By: Jason Holden

Jason Holden — Mon, 12 Nov 2007 17:40:12 +0000

Thanks for the comment Robert. I know it has been said before, but the old adage ‘don’t let the tax tail wag the dog’ still holds true.

By: Robert Moore

Robert Moore — Mon, 12 Nov 2007 16:21:55 +0000

In our line of work, which is listing companies for sale, the new CGT rules are very important. However, I would agree with Jason that it is important not to panic as concentrating on the transaction is paramount and trying to make sudden changes in response to Govt policy could upset things.

By: Capital Gains Tax changes, an uncertain future | Holden Associates Blog

Capital Gains Tax changes, an uncertain future | Holden Associates Blog — Wed, 31 Oct 2007 14:57:08 +0000

[…] recently made a posting concerning the changes to the capital gains tax regime, and the pressure being brought to bear on the new Chancellor by business […]

By: Jason Holden

Jason Holden — Mon, 29 Oct 2007 13:08:29 +0000

It sounds like some in the profession are panicking, my advice to these clients, take proper (better) advice before acting.

And remember, at worst this is only an 8% additional tax bill, you still keep the other 82%!

As I said, there are winners and losers, not fair, but life.

By: Erika Holden

Erika Holden — Mon, 29 Oct 2007 10:09:43 +0000

With regard to the capital gains tax reforms the flat rate does make it simpler to calculate the tax charge on the sale of assets. I used to have accountants asking me how to calculate the chargeable gain so what hope did the layman have? An ex colleague of mine was actually pleased with the reform because it will make his calculations for the tax returns much easier.

Those with non business assets such as buy to lets will be happy as their tax position on a future sale will be much better.

The people needing advice are those who are looking to exit out of their businesses over then next five years or so and who would currently benefit from business asset taper relief. Also clients may consider combining some succession planning with the protection of taper relief.

Anyone who has disposed of assets at a rate greater than 18% in this tax year may wish to take advice on how they may be able to benefit from the new 18% instead of the rate they are paying.

However it is important not to let the ‘tax tail wag the dog’. I have heard of suggestions in the professional field involving passing large amounts of money to other individuals such as girlfriends pre marriage. Given the option of paying an extra 8% tax or lose everything should my girlfriend with her now inflated bank account decide that actually she doesn’t want to marry me, I would pay the extra 8% every time (if I was a man!).

There are solutions available for clients willing to take professional advice on how to arrange their tax matters in an efficient manner. Just be careful though that the suggestions that are being put forward to you are sensible ones!