Capital Gains Tax (CGT) reliefs
There are reliefs you can claim which will mitigate the calculated gain, such as Private Property relief and Letting relief in the case of Houses and Land, and such as Business Asset Disposal relief (formerly Entrepreneurs relief) and Enterprise Investment Scheme (EIS) in the case of business assets (Shares) owned.
Sometimes assets are transferred between joint owners, such as in divorce or reorganisation of partnerships, and where no money changes hands but debt is taken over. Further reliefs may be available here, such as Exchange of Joint Property relief.
To be eligible for any of the above reliefs, certain criteria must be met, you can look these up on the HMRC website here;- https://www.gov.uk/capital-gains-tax-businesses/relief
Due to the nature of the eligibility criteria for Capital gains Tax reliefs, we recommend that you speak to your accountant or tax advisor about the gain on your disposal and any relevant reliefs that you might be able to claim. Remember if you have had any previous losses for CGT, these can be deducted against any gains even if they are not in the same tax year.
Ella Doherty FCCA
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