The best tax saving here is Entrepreneurs Relief (“ER”). Sales of business assets where you own over 5% of the business and are a director mean you only pay CGT of 10% after one year of ownership. This is on the first £10 million of gains.
Another tip to mitigate CGT completely is to emigrate before an asset sale and not return for at least one year after the sale. There are strict rules about timing and clearly enough tax has to be saved to make this worthwhile. There will always be issues about leaving family and friends behind but there are fast track ways of emigrating.
One great way to save tax on a business is to start it with others as an Enterprise Investment Scheme company – tax relief on investment and no CGT after three years is an attractive proposition.
Another example is to split a company into four that had £50 million of assets so each sibling had one quarter. No income tax, CGT, CT or even stamp duty using a section 110 Scheme of Arrangement.
of your CGT planning needs, helping to ensure that you minimise the impact of CGT and retain as many of the proceeds as possible.
For more information on effective Capital Gains Tax planning, please contact us.