Capital Gains and Inheritance Tax

Capital Gains and Inheritance Tax

You should plan in advance for capital gains or inheritance tax. PetersonSims offers a tax planning service with a view to minimising your tax liabilities whilst ensuring compliance.  Capital gains and inheritance taxes are often referred to as voluntary taxes. Depending on your circumstances and with careful advice, it is possible for individuals to reduce, totally avoid or delay payment of these taxes.

Capital Gains Tax

Individuals are charged capital gains tax (CGT) in respect of gains made from selling, transferring or otherwise disposing of assets; such as property, businesses, shares, bonds, and even precious metals.

If you are considering disposing of a personal asset,  all or part of your business then PetersonSims can advise on the CGT position before you make that disposal. There are many reliefs and exemptions which may be available, and which could lead to significant tax savings.

Capital Gains Tax for British Expats and Non-UK Residents with UK Property

The UK tax loophole which allowed overseas investors and British expats to avoid capital gains tax on the sale of residential property closed in 2015. Particularly affected are British expats and non-UK residents with UK property.

The sale of a UK property, which previously attracted no UK capital gains tax, could now incur a tax bill on any gains made after 6 April 2015.

If you are a non-UK resident, with a UK property, it is important that you understand the capital gains tax rules. PetersonSims can explain the full array of options and your compliance obligations.

Inheritance Tax

Nobody likes to contemplate the end of their life, but inheritance tax planning may help to keep more of your estate for your surviving family, rather than in the hands of HMRC. Inheritance tax can sometimes be eliminated, or at the very least reduced. We work in association with local lawyers or your appointed legal advisor, to ensure that your will reflects your wishes in the most tax efficient manner.

If you reside outside the UK, your estate may be subject to inheritance tax or death duties in your country of residence. If you are still considered as domiciled in the UK, your worldwide assets will be taken into account when determining any UK inheritance tax on your estate.

The UK Government has only signed a small number of international capital taxes treaties. These treaties govern the taxation of your estate if you are :

  • domiciled in the UK but have assets outside the UK
  • and/or you are resident outside the UK at the time of your death

PetersonSims will advise and explain how these international treaties can impact on your tax liabilities.

Non-domiciled individuals with assets in the UK may have specific inheritance tax issues, particularly if you have a UK domiciled spouse or civil partner. It is essential to talk to us regarding the potential tax position.

Seek our advice in structuring your financial affairs to ensure that you will not pay any more capital taxes than required.


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Capital Tax Updates