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Wrigleys Solicitors

telephone: 0113 244 6100

Capital gains tax

This impacts on the transfer of any assets that have an uplift in value but your intentions may still be possible with some constructive advice.

It may be that you have some losses that can be applied or some assets may qualify for hold-over relief, under which tax on a gift may be deferred (usually until they are disposed of by the recipient). Gains on sales of assets used in a trade can often be "rolled over" into replacement assets, so that (again) tax is deferred. Similarly, deferral of gains on other sales can sometimes be achieved, if those gains are reinvested in certain trading companies.

Gains on the disposal of your main residence are exempt, but care is needed where more than one house is owned. This exemption can also, in certain circumstances, extend to trustees who own a house occupied by a beneficiary of the trust.

A useful technique involves transferring assets into discretionary trusts, coupled with hold-over relief, up to the value of the current exempt allowance for inheritance tax. This can be repeated at 7 yearly intervals, often using your own and your spouse's allowances, and this is also an excellent family asset protection method.




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