If you sell any asset like a property, land, business shares, investments, a holiday home, antiques or jewellery for more than you paid for it, then there is a potential liability for Capital Gains Tax (CGT).
The rules are complicated and there are many exceptions and exemptions. But CGT is probably the most common area where the ‘man down the pub’ advice creates mistakes.
Getting advice early and planning ahead before you sell an asset can make a difference to the amount of CGT you have to pay. It can either reduce it, remove it completely or delay payment depending on your circumstances. Once the transaction has happened, planning options are greatly reduced.
Can you sell the asset(s) bit by bit?
Should you aim to sell before or after the end of the tax year?
Can you reinvest a gain to avoid paying the tax?
Is there a structure that can mitigate the tax completely?
Many complex aspects to think about, that need to be considered in advance. There is nothing worse for us than being presented with a situation where it is too late to change things and avoidable tax must be paid.
The critical point we want you to understand is that you have options. There are a wide range of planning ideas we can use to help you protect wealth, reduce tax, and access value from your assets. They are all uniquely tailored planning ideas, driven by your objectives.
So if you want to explore your options, why not have a free no obligation meeting (face to face or Virtual) to see how we can help you before you sell or transfer an asset!