In the News
Capital Gains Tax increased by up to 80%
The new rules for Capital Gains Tax which were proposed in the Pre-Budget Report some weeks ago may push up capital gains tax bills by up to 80%.
There has subsequently been substantial pressure on the Chancellor, Alastair Darling, to modify his proposed reforms.
He has said that he expects to publish his final proposals within the next three weeks but also said that “I know that my proposals to introduce a single rate of Capital Gains Tax have been controversial. That was inevitable.”
In view of the proposed changes there are a number of key tax planning opportunities to consider which include: -
1. Making the best use of Business Asset Taper Relief
In some circumstances it is vital to consider the possible transfer of business assets before 5 April 2008 to make the best use of the above relief.
2. Banking Indexation Allowance
It may be possible in some circumstances to “bank” Indexation Allowance by the transfer of assets as inter-spouse transfers. Again, if this is done before 5 April 2008, then Indexation Allowance may be preserved, which after that date may be lost.
We will update this article with developments in due course but it is important that you seek further advice if you feel that these issues will affect your future tax position.
For further information contact patrick@warings.co.uk.
6th December 2007