Locking in some gain under old rules

Locking in some gain under old rules

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In most cases business owners will be better off selling up under he current business asset taper rules than they will be under the new rules, if the currently available details are correct.

So where a business owner is sitting on again nut has no real wish to sell up how should we crystalise some of the gain under the old rules?

I think share for share exchange with a holding company he has just set up will not do as the new shares would normally take on the cost of the old ones. Can one opt out of that treatment?

If there is cash of fundable assets in old co perhaps it could be part cash part shares with financial assitance from old co to new co. This would be a partial disposal, the cash coming out would be capital and could be used to pay the reduced level of CGT.

Has anyone got any other ideas out there?
David James

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By User deleted
12th Oct 2007 13:01

same old problem
the perennial problem....Is it sensible to pay tax earlier than you would normally do in order to benefit from a current tax regime?

How would you feel if you arranged this early "sale", paid the tax, and in two years the Tories are in power and say, bring back indexation and the tape relief rules?

I seem to remember a couple of instances over the years when something like that happened. Indeed one of them was something to do with the original version of taper relief.

Also - think of all the lawyers who have had fees for drafting (or maybe just changing the names and printing) wills with nil rate band discretionary trusts in them!

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