Capital Gains Tax (CGT)

Capital Gains Tax (CGT) was introduced at the same time as corporation tax in 1965.

In broad terms, it is charged on capital gains, defined as chargeable gains accruing to a person on the disposal of an asset (Taxation of Chargeable Gains Act 1992 (TCGA 1992), s 1), whereby the gain would arise if the disposal value is greater than the acquisition value.

In general, a ‘person’ may be an individual or indeed a company, but also a trustee or personal representative.

There is no CGT on death, and the assets of a deceased would be deemed to be inherited at their market value, therefore, we would be looking into the respective Inheritance Tax situation in such cases. On the other hand, companies are excluded from CGT, although potential changes are being considered, at the moment their chargeable gains would be taxed through corporation tax.

When planning for any CGT implications, we always consider the potential opportunities by utilising available reliefs and exemptions, but stay clear of any artificial or contrived schemes.

Should you wish to discuss your requirements with a member of our tax planning team, please feel free to contact us for a complimentary meeting.