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6 | Year-End Tax Guide 2017/18
Ordinarily, each person is entitled to make a tax-free gain
up to £11,300 (or up to £5,650 for trusts).
Married couples and civil partners each have their own
£11,300 exemption, with gains above this threshold
usually taxed at a rate depending on income.
Where taxable income is less than the UK basic rate limit,
the CGT rate for gains up to the spare basic-rate band
allowance is 10%. After this it rises to 20%. The standard
rate applicable to a trust is 20%.
A higher rate of CGT applies to residential property and
carried interest which are taxed at a rate of 18% and 28%.
The rate applicable to disposals of similar assets by
trustees is 28%.
For business owners, entrepreneurs' relief gives rise to
a lower rate of 10% for qualifying gains. The maximum
reduction in tax is £1 million.
PLANNING
Have you used your annual exemption of £11,300?
What tax can be saved by maximising the advantage of
family member tax-free exemptions?
Should an asset that is going to be sold in the future be
transferred into joint names?
If a gain is going to be realised, are there other assets
which are standing at a capital loss that can be used to
reduce your gains?
Are there ways of deferring or rolling over the gain if tax
is due?
If you have substantial assets outside of an ISA, could
you arrange them to generate a tax-free income?
Have you reviewed your buy-to-let portfolio to
explore how you can reduce your tax liability from
property income?
Would it be beneicial to incorporate buy-to-let
properties into a company?
If you have two properties you have used as a home,
have you considered if your main residence election is
on the property with the largest gain?
CAPITAL GAINS TAX
NON-UK DOMICILE TAXATION
From 6 April 2017, non-domiciled individuals are deemed UK domiciled for tax purposes if they have been a UK resident for
15 of the past 20 years, or if they were born in the UK with a UK domicile of origin.
IHT is charged on UK residential property when this is held indirectly by a non-domiciled individual through an
offshore structure.
This, for example, might be where the property is held in a trust or a company.
CONTACT US TO DISCUSS PERSONAL TAX PLANNING