News
CAPITAL GAINS TAX:
The way in which capital gains tax will be calculated for individuals, personal representatives and trusts is to change fundamentally from 6 April, 2008. The main changes are that the current taper relief and indexation allowance will no longer be available for assets disposed of from 6th April 2008, and instead a flat tax rate of 18% will be applied to the gain to calculate the tax payable. Whilst there will be winners with the new rules, there will also be many who will be worse off.
The majority of business owners will be worse off when they come to sell their business, or perhaps when they pass the business down the generations.
Commercial property owners in the main will be worse off when they come to dispose of the property. However, owners of residential property, holiday homes or other assets that are not classed as business assets, may well be better off under the new rules in most circumstances.
If you are thinking of selling your business within the next few years, and would like to know more about how this is likely to impact your business - call Emma Talbott on 020 8871 3047.
HMRC IS FROZEN OUT OF ARCTIC!
Whilst at long last we have a sensible outcome on the Arctic case, the legislation may well change shortly. The current HMRC guidance can be found here.
The guidance and case are based upon the spouse's shares having full rights, to vote, to assets as well as to income. If the shares held by a spouse are merely a right to income then HMRC may still apply the settlement legislation.
