How to Mitigate Capital gains tax How to avoid capital gains tax
Mitigating Capital Gains tax can be achieved in several ways but since the changes in legislation prevented the creation of capital losses to offset capital gains, the options have been reduced. You need to shelter the entire investment in a tax-free environment prior to the sale so that when the gain is created where there is no CGT to pay by you. This will generally be because you have created the gain using an off-shore vehicle that is situated in a tax-free jurisdiction.
Don’t stop reading as you will be surprised how this easily this is achieved……….
When considering selling an asset like property that has a capital gain in it or “pregnant” with a capital gain, the gain is crystalised as a payable tax when you exchange contracts. When dealing with other assets this is not the case. Therefore when selling property, you must do the tax planning BEFORE you exchange contracts, otherwise it is too late to mitigate the tax.
Our preferred method of mitigating capital gains tax achieves this without changing the title, without altering any lending you have on the asset and it also leaves your profit in a tax-free vehicle where you can re-invest it if you wish without ever incurring any UK taxes again! No extra fees are charged for this either. This sounds like a tall order, but is achieved by simply gifting the Equity within the asset to a trust, while you retain full title. Therefore you never lose control of the asset as the title remains in your name and the trust gives you back the equity to manage on its behalf. No stamp duty is incurred in this transaction as the title does not change. No capital gains tax is incurred either because you get incorporation relief.
If the sale did not proceed for some reason, this is fine because the asset is sheltered permanently so if you sell it several years later, it will still be tax-free. In the case of property even the rent becomes tax-free and with company shares, the dividends become tax-free.
Call is now on 0845 052 3787 or email us on email@example.com for a free appraisal and to see how we will make your sale tax-free.
Mitigating Capital gains tax on Property, Shares, Gold etc Avoid capital gains tax
1. Mitigate the capital gains tax
2. Re-invest profits tax-free if you wish with no further fees
3. Can delay sale indefinitely but still not pay the CGT in the future
4. Well priced.
5. You NEVER lose control of the asset
6. You retain FULL Title
7. Your lending is unaffected
Do you qualify for capital gains tax mitigation?
If you have a potential gain/profit of over £100k now or in the future, you qualify to speak with our experts in how to avoid capital gains tax.
Want more information on Capital Gains Tax (CGT)? Click here.
Alternatively, to speak to one of our capital gains tax advice experts please call 0845 052 3787 today.