Planning to Save Capital Gains Tax for Expats
This week I have been thinking about capital gains tax saving opportunities for expat family and business.
Planning ahead can save a significant amount of tax for expats on the wealth we build in property, business and savings.
Tax saving on capital assets can be made when starting out with a property or investment purchase or as the wealth begins to build.
As your family and/ or business circumstances change, changes can be made by gifting to your family or trusts (including charitable arrangements).
When the time to sell a business or property comes the options are narrowed. You can defer your UK capital gains liabiliy by changing your tax residence in advance of sales and disposals. This varies by assets type.
Even so, worldwide capital gains can still be charged in your expat country of tax residence. Location makes a difference.
If assets are built up with a company, trust or charitable foundation over a long term you can control the tax residence to minimise income and capital gains taxes, reducing them to as low as 0%.
Capital Gains Tax (CGT) is not avoided by death.
Inheritance taxes can then apply to the estate or beneficiaries.
Inheritance taxes can be even higher than CGT with tax rates as high as 50%.
Clearly after death there are no tax planning opportunities. Tax planning needs to be carried our during your lifetime and often in good time.
In the upcoming webinars, vlogs and blogs we will address the following questions:
When is Capital Gains Tax Applied?
How Much is Capital Gains Tax?
Tax planning steps to save capital gains tax.
Tax Planning steps to avoid inheritance taxes for your family.
Join us live (view webinars) and subscribe as a Retained Client for detailed content and know how for expat family and business living and working abroad.