Any Legal way to avoid / reduce capital gains tax?
Discussion
How many people own the property?
Every individual has an annual Capital Gains Tax allowance which for 2015/16 is £11,100 (not £10,000 as mentioned a couple of times above). So, if three people owned the property, the gain would be split between the three individuals and each would be able to allocate their personal £011,000 Capital Gains tax allowance against their share of the gain.
In the years of ownership, was there any serious capital expenditure on the property on which no other form of tax relief was obtained (such as repairs offset against rental income or expenditure on which capital allowances were claimed)? If there was such expenditure - which in CGT is referred to as "Enhancement Expenditure" - then you can add those costs to the original purchase cost of the property - thereby reducing the gain on disposal.
Was the property rented out or was it used for a business that you conducted?
https://www.gov.uk/capital-gains-tax-businesses/re...
Every individual has an annual Capital Gains Tax allowance which for 2015/16 is £11,100 (not £10,000 as mentioned a couple of times above). So, if three people owned the property, the gain would be split between the three individuals and each would be able to allocate their personal £011,000 Capital Gains tax allowance against their share of the gain.
In the years of ownership, was there any serious capital expenditure on the property on which no other form of tax relief was obtained (such as repairs offset against rental income or expenditure on which capital allowances were claimed)? If there was such expenditure - which in CGT is referred to as "Enhancement Expenditure" - then you can add those costs to the original purchase cost of the property - thereby reducing the gain on disposal.
Was the property rented out or was it used for a business that you conducted?
https://www.gov.uk/capital-gains-tax-businesses/re...
Is it eligible for entrepreneurs relief ? Thought if selling up you'd be eligible for tax at 10%, rather than a higher rate of 18% or 28%
https://www.gov.uk/entrepreneurs-relief/eligibilit...
10% of £224k (£300k-(£65k+£11k)) @ £22.4k isn't the worst it could have been & another persons relief would only save £1100.
https://www.gov.uk/entrepreneurs-relief/eligibilit...
10% of £224k (£300k-(£65k+£11k)) @ £22.4k isn't the worst it could have been & another persons relief would only save £1100.
Edited by thepeoplespal on Monday 20th April 21:28
tight fart said:
No just by me, never in a Ltd co.
Thanks.No Taper Relief and no Indexation can be applied.
Don't forget that when Taper Relief existed, the rate of Capital Gains Tax was an individual's top rate of Income Tax - at that time 40%. So, Taper Relief was abolished and CGT was set at 18% - for everybody (irrespective of their other income). That was introduced by Alistair Darling in his 2008 budget.
One of the first things Osborne did as Chancellor was to introduce the higher rate of CGT of 28%.
I have no idea if it is true, but i was once told that there is no capital gains tax to pay if you live in Belgium.
Someone selling their home in UK and moving to Belgium, who then subsequently sold their investment property wouldn't have any CGT liability.
I think this is part of EU rules where you are taxed based on the tax rules of the country where you live, so you would need to genuinely have moved to Belgium.
Of course you might decide sometime later that Belgium is not for you and then move back to the UK.
NB. I'm not a tax expert and this might be complete poppycock, but it does sound plausible(?)
Someone selling their home in UK and moving to Belgium, who then subsequently sold their investment property wouldn't have any CGT liability.
I think this is part of EU rules where you are taxed based on the tax rules of the country where you live, so you would need to genuinely have moved to Belgium.
Of course you might decide sometime later that Belgium is not for you and then move back to the UK.
NB. I'm not a tax expert and this might be complete poppycock, but it does sound plausible(?)
100 IAN said:
I have no idea if it is true, but i was once told that there is no capital gains tax to pay if you live in Belgium.
Someone selling their home in UK and moving to Belgium, who then subsequently sold their investment property wouldn't have any CGT liability.
I think this is part of EU rules where you are taxed based on the tax rules of the country where you live, so you would need to genuinely have moved to Belgium.
Of course you might decide sometime later that Belgium is not for you and then move back to the UK.
NB. I'm not a tax expert and this might be complete poppycock, but it does sound plausible(?)
sooner go to the Turks and Caicos Islands....Someone selling their home in UK and moving to Belgium, who then subsequently sold their investment property wouldn't have any CGT liability.
I think this is part of EU rules where you are taxed based on the tax rules of the country where you live, so you would need to genuinely have moved to Belgium.
Of course you might decide sometime later that Belgium is not for you and then move back to the UK.
NB. I'm not a tax expert and this might be complete poppycock, but it does sound plausible(?)
100 IAN said:
I have no idea if it is true, but i was once told that there is no capital gains tax to pay if you live in Belgium.
Someone selling their home in UK and moving to Belgium, who then subsequently sold their investment property wouldn't have any CGT liability.
I think this is part of EU rules where you are taxed based on the tax rules of the country where you live, so you would need to genuinely have moved to Belgium.
Of course you might decide sometime later that Belgium is not for you and then move back to the UK.
NB. I'm not a tax expert and this might be complete poppycock, but it does sound plausible(?)
Really?Someone selling their home in UK and moving to Belgium, who then subsequently sold their investment property wouldn't have any CGT liability.
I think this is part of EU rules where you are taxed based on the tax rules of the country where you live, so you would need to genuinely have moved to Belgium.
Of course you might decide sometime later that Belgium is not for you and then move back to the UK.
NB. I'm not a tax expert and this might be complete poppycock, but it does sound plausible(?)
IceBoy
100 IAN said:
I have no idea if it is true, but i was once told that there is no capital gains tax to pay if you live in Belgium.
Someone selling their home in UK and moving to Belgium, who then subsequently sold their investment property wouldn't have any CGT liability.
I think this is part of EU rules where you are taxed based on the tax rules of the country where you live, so you would need to genuinely have moved to Belgium.
Of course you might decide sometime later that Belgium is not for you and then move back to the UK.
NB. I'm not a tax expert and this might be complete poppycock, but it does sound plausible(?)
This is not true.Someone selling their home in UK and moving to Belgium, who then subsequently sold their investment property wouldn't have any CGT liability.
I think this is part of EU rules where you are taxed based on the tax rules of the country where you live, so you would need to genuinely have moved to Belgium.
Of course you might decide sometime later that Belgium is not for you and then move back to the UK.
NB. I'm not a tax expert and this might be complete poppycock, but it does sound plausible(?)
Taxation rights are dictated by the DTT between Belgium and the UK. Article 13 of the DTT clearly states that taxation rights in the case of someone resident in Belgium, with UK property, are UK rights ie, taxed in the UK.
If you want to go the non-resident route, you now have to be so for 5 whole tax years otherwise you will be subject to the tax upon your return!
I cant say I would bother given the sums involved - there are other ways of mitigating the tax such as pension contribution, EIS investment etc.
David
I cant say I would bother given the sums involved - there are other ways of mitigating the tax such as pension contribution, EIS investment etc.
David
sumo69 said:
If you want to go the non-resident route, you now have to be so for 5 whole tax years otherwise you will be subject to the tax upon your return!
I cant say I would bother given the sums involved - there are other ways of mitigating the tax such as pension contribution, EIS investment etc.
David
In this case we are talking about UK real estate, so the taxing rights are with the territory in which the property is located.I cant say I would bother given the sums involved - there are other ways of mitigating the tax such as pension contribution, EIS investment etc.
David
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