[Webinar] Planning to Save Capital Gains Tax
In this weeks Wednesday Webinar (view future webinars) I took a deep dive into how you can reduce your capital gains tax liability when you sell assets such as cryptocurrency, properties, businesses by taking steps ahead of the sale to protect yourself and your families wealth.
Book a free review to see how much capital gains tax you could save.
What is capital gains tax charged on?
Capital gains tax (CGT) can be charged on any personal procession asset sold for value.
The first consideration is the value of sale must be more than £6000.
Under this figure there is no consideration for CGT.
This could be any personal items of value including stamps, collectables, jewellery or an antique.
To define if a personal procession is liable to a CGT such assets are reviewed under wasting assets rules. Simply this means if the personal procession of furniture , a collection would hold its value and appreciate after 50 years it is valuable and liable to capital gains tax on disposal.
Investments in company shares, investment portfolios or Crypto are assets that also experience a capital gains tax on disposal.
If company shares are acquired by employees through saving scheme these too can be subject to a capital gains tax on disposal.
Business assets sold separately, be they real, tangible or intangible can also be subject to capital gains tax.
Wasted and depreciated office furnishing or computers nearing the end of life would not be. a sale of a brand rights or licence could well be.
Real estate for sure is subject to capital gains tax. commercial property assets are treated as normal capital gains liabilities.
Residential property tax
UK Residential property is a different beast. Since 2019 new rules mean Residential property has a separate higher rate of capital gains tax up to 28%. While a UK home and main residence is exempt completely expats need to consider very carefully how to ensure they retain capital gains tax exemption on this property.
They may be required to live in the property for up to 90 days a year, which brings up tax residency rules in the UK.
If there is a business or rental use of that main home, before or after becoming non resident expat then again UK capital gains tax can apply.
Plan ahead
Having considered what is liable to capital gains tax expats investing in the UK can then consider the potential tax liability to pay for capital asset disposals from the UK, up to 28% during a lifetime and 40% on death.
In this episode in the live webinar series ProACT Sam discusses the rates due and when then goes on to discuss some of the tax planning ideas to protect a family & business from capital gains taxes on the wealth accumulated in property, investments and business in the UK and around the world.
Who, what, when
Capital gains tax could be applied on to non resident expats, or those returning to the uk;
Capital gains tax could be applied on fixed assets in the UK or worldwide assets if the expat is tax resident in the UK at time of disposal;
On death you avoid capital gains tax to face inheritance taxes.
We have articles, guides and ProACT Know How to help expats protect their overseas property, business and investments and keep the family in control across borders.
The final webinar in the series looks in detail how inheritance tax (IHT) can take over the mantle and tax expat family and business to a higher degree still.
With ideas strategies and tactics to make tax planning savings so your family and not the tax benefits from your family, property and business wealth.