CAPITAL GAINS TAX & CAPITAL ACQUISITIONS TAX

Tax Planning Opportunities

 

Capital Gains Tax (CGT) is payable on gains arising from the disposal or transfer of assets while Capital Acquisitions Tax (CAT) arises on the receipt of assets by means of gift or inheritance.

 

Both the CGT and CAT rates have increased from 20% to 33% since 2008 and the CAT Tax Free Thresholds have reduced by up to 60% in the same period.

 

Therefore, it is important that professional advice is sought in order to ensure that both CGT and CAT liabilities are kept to a minimum.

 

Ormsby & Rhodes can offer you professional advice regarding Tax planning opportunities which are available in respect to both CGT and CAT. These include:

 

CGT:

 

-Principal Private Residence Relief,

-Dependent Relative Relief,

-Disposal of Site to child,

-Business Reliefs (Retirement Relief, Agricultural Retirement Relief, Buy Back of Company Shares)

-Transfer to spouse,

-Annual exemption,

-Capital loss and negligible value claims

-Debt write offs

 

CAT:

 

-Dwelling House Exemption,

-Business Asset Relief,

-Agricultural Relief,

-Small Gift Exemption,

-Effective utilisation of Tax Free Thresholds,

-Transfer between spouses

-Foreign Inheritance Tax on foreign assets

 

Both CGT and CAT may arise on the same event and exposure to foreign Capital Taxes may arise where assets or individuals are present in foreign jurisdictions, all of which require careful management.

 

If you wish to discuss Tax planning opportunities please do not hesitate to contact any member of our Tax Department.