News & events

Press Releases

Sort by:

Press Office

For all media enquiries contact Edwards Harvey PR on 01622 604600 or email enquiries@edwardsharvey.com

You are here: Home > News & events > Press Releases > Capital Gains Tax Could Be Next For Tax Hike

Capital Gains Tax Could Be Next For Tax Hike

17 December 2009

With a General Election just around the corner, all eyes are focused on the tax changes that could hit us in the future, says Kent chartered tax adviser Sarah Bogard.

After the last shock announcement that from April 6, 2010 there will be a 50% top income tax rate on income in excess of £150,000 – combined with a clawback of the personal allowance when income exceeds £100,000 - many taxpayers are finding ways to reduce the impact. And that may well include looking for capital growth rather than income growth.
 
Sarah, a member of the Chartered Institute of Taxation and a partner at leading regional law firm Furley Page, said: “Many predict it could be the turn of Capital Gains Tax for another change. The Chancellor could set a higher rate in an attempt to bring in more funds to pay for the recent high borrowings.
 
“It’s crucial you claim all the tax relief you can – particularly when we’re living in an era of increasing tax charges – but you’ll need to check the rules very carefully to make sure your circumstances fit.”
 
Here are some of the reliefs you can claim on Capital Gains Tax (CGT):

  • The current annual exemption is £10,100 per individual. A transfer between married couples doesn’t trigger a tax charge but by making it you can take advantage of both annual exemptions on a future disposal
  • If you use two or more properties as your residence – say you have your main home and also a holiday home either in the UK or abroad – you have the right to elect which property should be regarded as your principal private residence to get CGT relief. This could save you a significant amount of CGT.                    
  • If you let a property which at some point has been your principal private residence you can claim lettings relief on a disposal
  • Entrepreneurs’ relief may be available on gains made on the disposal of all or part of a business. The first £1million of gain is taxed at an effective rate of 10%. There are strict conditions so check carefully.
  • Holdover relief is available on certain transfers of assets to and from trusts to defer a CGT charge until a later date. It’s also available on a gift of certain business assets.
  • Incorporation relief is available on the incorporation of a business.


For further information contact Sarah Bogard, Partner and Chartered Tax Adviser, on 01227 763939.


Notes to Editors

Sarah Bogard is also head of Furley Page’s French property team.

Established in 1725, Furley Page Solicitors has offices in Canterbury, Chatham, Whitstable and Lloyds of London offering legal services across wide-ranging practice areas in commercial and private client law. It is led by 21 partners and supported by more than 100 legal staff. Furley Page is recommended by Chambers and the Legal 500. Furley Page is authorised by the Financial Services Authority to offer independent financial advice. 

‹ Back

Quick contact

Furley Page Solicitors in Kent, London, Canterbury, Chatham & Whitstable
Get in touch on 0845 603 10 57