Capital Gains Tax on Business Assets
You may pay capital gains tax if you sell or dispose of a business asset or interest. You pay tax on the difference you bought and sold it for. You are allowed to deduct other costs such as enhancement expenditure, professional fees and costs that you incurred when acquiring and disposing of the asset or interest.
There are ways to reduce your capital gains liabilities or defer them.
Business Asset Disposal Relief allows you to pay 10% on gains on qualifying assets if you meet the qualifying conditions.
Holdover Relief allows you to defer business asset gains and pass these liabilities to others.
Rollover relief allows you to reinvest the proceeds into a new business asset and defer the gain.
Capital gains rates of tax on business assets are currently dependent in some cases on your other income.
The team at Spirare can provide you with the full details of this tax and ways to minimise your liabilities.