- the extent to which gains relate to disposals of business assets
- the total amount of relief given on any previous qualifying disposals
Leave a message?
Tax advisors are specialists with advanced training and knowledge of tax law. They ensure that their clients are paying the correct but lowest amount of tax possible by legally lowering the tax liability and providing their clients with financial and tax-related advice. The main tasks of tax advisors usually include staying up to date on the latest tax requirements, consulting tax law handbooks and looking for bulletins regarding common and typical tax procedures. There are a number of tax requirements that need to be fulfilled while registering a company and after the company formation. Tax requirements usually include registering for Value Added Tax (VAT), registering as an employer through PAYE registration and completing and filing a corporation tax return. In addition, it is a legal requirement as a director of a UK company to file a UK self-assessment tax return. As a UK resident director this would include income and gains. Capital Gains Tax is the tax on the profit or gain made when an asset is sold or disposed of. There are certain reliefs to reduce the Capital Gains tax rate. One of these reliefs is Entrepreneurs’ Relief. Entrepreneurs’ Relief reduces the amount of the Capital Gains Tax on a disposal of qualifying business assets. Individuals or trustees of a settlement can claim entrepreneurs’ relief. The claim may be amended or revoked within the time limit for making a claim. It is necessary to remember that a number of conditions need to be satisfied through the ‘qualifying period’. The qualifying conditions depend on the type of disposal made by the individual. There can be disposal of the whole or part of the business, disposal of assets following cessation of the business and disposal of shares in or securities of the personal company. Entrepreneurs’ Relief may be available to trustees of settlements who dispose of trust property that consists of either assets used in a qualifying beneficiary’s business or shares in a qualifying beneficiary’s personal trading company. For qualifying disposal, the amount of relief available depends on the following:
Back to News & Press