CAPITAL GAINS TAX

The real problem people have with Capital Gains Tax is that most people will make a disposal once or twice in a lifetime, and it is not an easy tax to understand. After nearly 35 years of dealing with the tax I have some idea about it !

Most problems arise from sales of real property – houses and flats. Selling a home where you have lived throughout your ownership is not a problem because the gain is exempt, but questions arise about

• Property that has been gifted or left to you
  
• Property you have bought to rent out
  
• Property you have lived in for a time and then rented out, or vice versa
  
• Property abroad
  
• Sales by people leaving or coming to the UK
  
• Arrangements made about the homes of elderly parents

The tax consequences of these things ought to be considered in advance, and I can help with that. Unfortunately they very seldom are, and then I can help to pick up the pieces.

Of course CGT issues will also arise on the sale of a business, where they tend to be part of wider tax planning.

There are a number of reliefs available. They have changed over the years and their interaction can be very complicated.