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:
CBA is the market value of the company’s charg
**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
This note offers guidance in respect of the administration of company tax returns. If a company or organisation is subject to corporation tax they will have to complete and file a company tax return for each accounting period. A company or organisation must, in the main, file a return even if they
Summary of capital allowances on carsThe current capital allowance rates applicable to cars are as follows:Pool typeDescription of carRateLegislationMain rate poolNew and unused cars with CO2 emissions over 50g/km but not more than 110g/km (to be reduced to 50g/km and below from April 2021)18%CAA
Expenditure of a capital nature is not allowed as a deduction when calculating trading profits. Expenditure of a revenue nature is allowable, provided there is no specific statutory rule prohibiting a deduction and the expenditure also satisfies the wholly and exclusively test. See the Wholly and
Why is this important?Tax-free amountEach individual, whether or not they are resident in the UK, is entitled to an annual exempt amount when calculating the taxable amount of their chargeable gains for the tax year (although see the exceptions below). The annual exempt amount is also known as the
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.