The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
In certain situations, gift relief is available to defer capital gains on gifts of business assets, which would otherwise be immediately chargeable to CGT.
This guidance covers restrictions on gift relief where a donor gives away shares of a company holding non business assets or where only part of an asset or holding period was used for business purposes.
For an introduction to gift relief, including the definition of business assets, and information about making claims and the possibility of paying tax in instalments, see the Gift relief guidance note.
Gift relief will not always be available to completely eliminate the capital gain. Sometimes gift relief is restricted. The most common example when full gift relief will not be available is where a donor gives away shares in his personal company, and that company holds non-business assets.
If this is the case, the amount of the gain which qualifies for gift relief is restricted by the following fraction:
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
If an individual sells a chargeable asset and makes an allowable loss, how can this be relieved?First of all, since the simplification of capital gains tax from 6 April 2008, the proforma to calculate a loss is the same as the proforma to calculate a gain. See the Basic calculation principles of
Once a self assessment tax return has been filed, both HMRC and the taxpayer (or the agent) has the right to make changes to the return. There are different time limits depending on whether it is a correction by HMRC or an amendment made by the taxpayer.CorrectionHMRC has the right to amend the tax
OutlineWhen a property investor grants a lease, potentially this could be done on the basis that the tenant pays a premium for the initial grant of the lease, in addition to also paying rent over the term of the lease. In the absence of specific legislation to the contrary, such premiums would all
RDEC ― large company R&D reliefSince 1 April 2016, or from 1 April 2013 by election, large company R&D relief is given through research and development expenditure credits (RDEC), which is a taxable credit payable to the company. As the credit is taxable, it is also sometimes called an above the