Capital Gains Tax reliefs broken down

There are several types of Capital Gain Tax reliefs that are available

Roll over (replacement of business assets) relief

Roll over Capital Gains Tax (CGT) relief applies to both individuals and company’s, at any time during the life of a business.

Which type on asset is roll over it applicable to?

Roll over (replacement of assets) relief is available on assets used for the purposes of trade or deemed trade. There are specific rules in place for assets with a life of less that 50 years-they are normally exempt from Capital Gains Tax.

 

Roll over (incorporation relief)

Roll over (incorporation relief) applies to individuals on incorporation under section 162.

Which type on asset is roll over it applicable to?

A business and its chargeable assets transferred to a company (no requirement for  there to be a trade)

Disincorporation (roll over)

Disincorporation (roll over) CGT relief applies to companies on disincorporation under section 162B

Which type on asset is roll over it applicable to?

The goodwill and land and property in the transfer of a company's business to its shareholders

 

Hold over (gift of business assets)

Hold over (gift of business assets) CGT relief applies to individuals at any point in time under section 165 and 260

Which type on asset is roll over it applicable to?

An asset used for the purposes of a trade, profession or vocation carried on by:

·       The donor as a sole trader or in partnership

·       The donor's personal company

Transfers of agricultural property

Relief is available to the trustees of a settlement if they carry on the trade themselves or it is carried on by a beneficiary with a life interest in the trust

 

Hold over (gifts)

Hold over (gifts) CGT relief is available to individuals at any time under section 165 and 260

Which type on asset is roll over it applicable to?

Gifts of assets that are immediately chargeable to IHT, or would be were it not for the IHT nil rate band 

 

Entrepreneurs Relief

Entrepreneurs CGT relief is available to individuals at any point in time under section 169H

Which type on asset is roll over it applicable to?

Businesses and business assets, where business is a trade, profession or vocation

 

Private Residence relief

Private Residence CGT relief is available to individuals in the disposal if an only or main residence under section s222.

Which type on asset is roll over it applicable to?

Relief on the disposal of an individual's only or main private residence:

·       Land and property

·       Land restricted to a permitted area

 

If you’re seeking advice regarding Capital Gain Tax or/and Capital Gains Tax relief contact us.