Delaying Capital Gains Tax

If you have already used the 2012/13 annual exemption for capital gains tax but thinking of selling some more assets of yours, what are the options available to you?

If you need to sell an asset to boost your cash flow, you may not like to share the proceeds with HMRC. Here’s a simple but effective way to delay paying Capital Gains Tax for up to 21 months. If you put back the sale of assets until after April 5 2013, it will fall in the tax year 2013/14. As a result, any tax due won’t be payable until January 31 2015.


It’s a trend these days for companies to re-organise their share capital. That might be as part of a take over or, as in the case of a few banks at the moment, a rights issue. When this happens you may receive a cheque from the company involved. This type of payment is called a “capital sum”. Normally, capital sums derived from shares, unit trusts etc. are treated as a sale for capital gains tax purposes. But where the amount is “small” compared to the total value of that asset, you can defer the CGT until you sell it.

For more advice on capital gains tax and its accounting treatment, contact an accountant. Contact KVS Accountants for any tax related advice.. KVS has helped many businesses and individuals in Fulham, Putney and all across London on all kinds of tax related matters. KVS acts as tax advisors in Earls Court, Parsons Green, Battersea, Southfields, Earlsfield, Fulham, Roehampton and Wimbledon


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