Ensure the most economically advantageous structure for personal Capital Gains taxation.
Whilst Gerard Associates Ltd. Can give you advice on certain aspects of taxation we are not tax advisers. We can recommend fellow professionals to help you if requested. We do however give advice on the following:
CAPITAL GAINS TAX (CGT)
This is, to put it simply, a tax on capital gains. You have an annual exemption (currently £8,800 2006/2007) and will only face an actual bill if your gains on disposals of chargeable assets in any one year exceed this amount.
Other relief's (Indexation Allowance and Taper Relief) may also be available.
If you do face a Capital Gain in excess of your annual exemption and other reliefs then, in order to calculate your tax, this gain is added to your income for the year and taxed as follows:
- below the starting rate limit is subject to CGT at 10%
- between the starting rate and basic rate limits is subject to CGT at 20%
- above the basic rate limit is subject to CGT at 40%
Should the gain take you into the higher rate tax bracket then you will pay some tax at this higher rate.
