Tag Archives: CGT

PPR relief: Three (refusals) in a row!

Principal private residence (PPR) relief for capital gains tax purposes is available on most disposals by individuals of their dwelling-house. The assumption is normally that any capital gain will be subject to PPR relief. Unfortunately, this assumption is not always correct. Is it ‘occupied’? PPR relief broadly applies to gains accruing to individuals on the… Read More »

Trust for the kids: What could possibly go wrong?

A parent with sufficient means may sometimes wish to transfer an income producing asset. For example, mother may wish to transfer investment property in London into a discretionary trust for her daughter (e.g., to help cover university costs or supplement income when buying her own home and/or starting a family). However, there are various tax… Read More »

Purchase of own shares: Worth the bother?

For individual shareholders of family or owner-managed trading companies, a company purchase of own shares (CPOS) can be a useful ‘exit’ strategy in the right circumstances, subject to certain company law requirements being satisfied. Income or capital? When the company buys back its own shares from the shareholder, any ‘premium’ (i.e., payment exceeding the capital… Read More »

The ‘forgotten’ CGT relief

Many individual business owners are aware that a capital gains tax (CGT) rate of only 10% can apply if business asset disposal relief (BADR) (previously known as entrepreneurs’ relief (ER)) is available on qualifying business disposals, up to a lifetime limit. A major ‘headline grabber’ was the Chancellor’s announcement in the March 2020 Budget that… Read More »

It’s a ‘business’: HMRC says so!

It might be considered straightforward enough to identify a ‘business’. However, that is not necessarily the case. HMRC will not give advance clearance on whether activities constitute a business. However, this question can be important for various tax purposes. An important issue For example, whether a business exists is a potential issue for many buy-to-let… Read More »

Holiday homes: A CGT solution?

The landlord of a furnished holiday letting (FHL) that satisfies certain conditions can potentially benefit from ‘special’ tax treatment and certain tax reliefs, which landlords of other properties cannot access. Does it qualify? The requirements for a furnished property to be ‘qualifying holiday accommodation’ are beyond the scope of this article, but the three basic… Read More »