Capital Gains Tax (CGT) is charged on the growth in assets on a sale or gift. Depending on the assets and structure used it can range from 10-28% and a large number of reliefs can be applied to gains to reduce or defer the tax.

The most common assets to suffer CGT are land and property and successful businesses. As such its vital to understand how to hold the assets in order to minimise the tax as inefficient structures could lead to a doubling of the potential tax cost. It’s also important to review the position on an ongoing basis as plans, tax rates and opportunities can change on an annual basis.

CGT is often tied up with inheritance tax planning as both often relate to the most valuable assets in your estate and as such the impact of one can be substantial on the other and it’s vital to ensure that both aspects are considered. For business owners, ensuring entrepreneurs relief applies on a sale can save up to £1m in tax, but following the sale the entire proceeds may be subject to inheritance tax.

However, for many clients understanding their options, including international options can result in substantially reduced exposure to tax.