Enquiries

Name

Invalid Input
Phone

Invalid Input
Email

Invalid email address
Enquiry Type

Invalid Input
Comments

Invalid Input
Enter Code
Enter Code

Invalid Input



Other existing CGT reliefs

Other existing reliefs will continue to be available post 6 April 2008 for:

  • Principal private residence relief and letting relief
  • Business asset roll over relief
  • CGT relief under the VCT and EIS schemes
  • Business asset gift hold-over relief
  • Losses may still be carried forward

Business disposals, Qualifying Corporate Bonds (QCB’s) and business asset status

  • The new Entrepreneur’s Relief applies from 6 April 2008, and there is no detail yet about any transitional reliefs which could cover situations where part of the consideration for the disposal of a business prior to 6 April 2008 is in QCBs to be redeemable post 6 April 2008. Without any transitional measures, and if Entrepreneur’s Relief does not apply, gains on the QCBs when cashed would otherwise be taxed at 18%.
  • Even though business asset taper relief disappears from 6 April 2008, Entrepreneur’s Relief is dependent on there being a qualifying business ongoing. It will therefore be essential to ensure that the business is a qualifying trade, profession or vocation (or holiday let), which means the former 20% test lives on post 6 April 2008. This test measures non-trading activities, which must not be substantial (i.e. account for more than 20% of turnover, or assets or profits). This means that businesses will have to continue to watch the size of cash balances or investment activities after all.

Deferred gains

Where a gain has been deferred say, under Enterprise Investment Scheme (EIS), indexation accrued up to 5 April 2008 will not be lost when the gain becomes chargeable after that date. Taper will not apply to deferred gains from 6 April 2008.
The position for some deferred gains which would have formerly attracted halving relief will from 6 April 2008 require some further verification from HMRC.

Non-business asset, mixed use asset disposals

Following introduction of the new regime there will not be 'tainted' or mixed taper relief problems nevertheless, some exclusive business use may still be detrimental in some cases, where it might deny other reliefs, such as the principal private residence relief.