They'll have to give them to you quarterly. This is where we come in. The problem is how to manage time costs versus client affordibility. It will cause problems for the very type of people you mention along with other individuals who earn a basic freelance living but are not accounting minded, while successful and affluent businesses will barely notice.
Yes of course but that doesn't mean the gain is then divorced from the original disposal. The gain coming back to charge is treated as having the same asset status as on the original disposal so it isn't divorced.
It is of course taxed at current rates, so in the past you could defer a gain and if the CGT rate subsequently went down then you'd done well, but based on previous principles that would mean that a deferred residential property gain would still be a residential property gain when it was brought back into charge.
The article concerns deferral relief which is not dependent on claiming income tax relief. Indeed deferral relief can be claimed by an individual investor in cases where they do not qualify for income tax relief on the investment.
"the gain has become divorced from the original disposal. The gain is said to accrue, and the legislation gives instructions for calculating how much is to be taxed, but there is no specific provision that deems the gain to be one arising from a particular asset disposal (the residential property)."
Are we sure about this?
Surely the legislation states that the original gain woul have accrued on a relevant business disposal?
HMRC guidance continues to state "Eligibility for relief will be determined under the rules which applied at the time of the first disposal"
My answers
They'll have to give them to you quarterly. This is where we come in. The problem is how to manage time costs versus client affordibility. It will cause problems for the very type of people you mention along with other individuals who earn a basic freelance living but are not accounting minded, while successful and affluent businesses will barely notice.
Yes of course but that doesn't mean the gain is then divorced from the original disposal. The gain coming back to charge is treated as having the same asset status as on the original disposal so it isn't divorced.
It is of course taxed at current rates, so in the past you could defer a gain and if the CGT rate subsequently went down then you'd done well, but based on previous principles that would mean that a deferred residential property gain would still be a residential property gain when it was brought back into charge.
Does the legislation not suggest this?
The article concerns deferral relief which is not dependent on claiming income tax relief. Indeed deferral relief can be claimed by an individual investor in cases where they do not qualify for income tax relief on the investment.
"the gain has become divorced from the original disposal. The gain is said to accrue, and the legislation gives instructions for calculating how much is to be taxed, but there is no specific provision that deems the gain to be one arising from a particular asset disposal (the residential property)."
Are we sure about this?
Surely the legislation states that the original gain woul have accrued on a relevant business disposal?
HMRC guidance continues to state "Eligibility for relief will be determined under the rules which applied at the time of the first disposal"
Any clarification on that please?