Sheffield-based Hart Shaw Business Recovery Services is encouraging business and home owners to give greater consideration to Capital Gains Tax when selling a business or propery.
The advice comes after new figures showing that the amount of CGT being collected by the government is growing at a rate of 43% per year; one of the fastest areas of revenue growth for the Treasury.
According to the latest government figures, in 2013-14 the total amount of CGT collected rose to £5.5 billion; up from £3.4 billion in 2012-13. The increase is believed to be due to further rises in the value of shares and property, as well as an increase in turnover for investments subject to CGT.
In recent years HM Revenue & Customs (HMRC) has also become more vigilant in identifying those who have a liability through various targeted campaigns, which has significant Capital Gains Tax implications. Basic rate taxpayers pay CGT at a rate of 18%, while higher and additional rate taxpayers pay a rate of 28%, which is offset by an annual CGT allowance. This is currently £11,100 for individuals and £5,500 for trusts.
Christopher Brown, Hart Shaw’s Insolvency Practitioner commented: “The increase in CGT is not surprising considering the increase in the value of property and shares, stricter monitoring by HMRC and a number of other changes that have contributed to a larger tax take.
“However, there are still options available to individuals and businesses who wish to reduce their CGT tax bill, including schemes such as entrepreneur’s tax relief which is available to some companies.”
It is important that individuals and businesses seek professional advice to reduce their tax liabilities, as there could be savings to be made.
« More UK start-ups survive