News: April 2015

Capital taxes

It had already been announced that the CGT annual exempt amount would increase to £11,100 for 2015/16. With a top CGT rate of 28% this allowance potentially saves £3,108 a year, or £6,216 for a married couple.

There has been no change in the inheritance tax nil rate band which remains at £325,000 until 2018. There are a number of changes to the inheritance tax treatment of trusts. Please contact us if you wish to discuss these or any other capital tax planning matters.

Further restrictions to cgt entrepreneurs’ relief

You may recall that in the 2014 Autumn Statement it was announced that it is no longer possible to claim CGT entrepreneurs’ relief against the gains arising on the sale on or after 3 December 2014 of goodwill by a sole trader or partnership to a limited company in which they have a controlling interest.

It has now been announced that from 18 March 2015 CGT entrepreneurs’ relief will be restricted on certain “associated disposals”. The 10% CGT rate will no longer be available on the disposal of personal assets used in a business carried on by a company or a partnership unless they are disposed of in connection with a disposal of at least a 5% shareholding in the company or a 5% share in the partnership assets.

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