Key Strategies
Capital Gains Tax Mitigation
We are delighted that following hot on the heels of our launch of Aikido we can now make available planning that will allow individuals to shelter unrealised capital gains on assets held personally.
Headlines
• Suitable for individuals owning investment assets standing at an unrealised gain.
• Gives a tax free uplift in base cost to the current market value
• Does not involve the creation of a loss so no “purpose” test concerns.
• Suitable where onward disposal is not envisaged for > 12 months.
• Robust opinion from Counsel.
• Minimum gain to be sheltered £250K.
• Fees 7% of the gain to be sheltered.
• Disclosed under DOTAS.
Risk
As with all planning disclosed under DOTAS the planning is likely to come under scrutiny from HMRC. Clients should be prepared for that challenge and the enquiries that would almost certainly follow.
However, the planning is less aggressive than a number of CGT mitigation strategies as it does not seek to create a loss or other relief. It simply takes advantage of a specific statutory provision to uplift the base cost of an asset contributed to an LLP in certain circumstances. Further, it is not a “quick in and out”. The LLP would be in place for at least one year. It should therefore appeal to a broad spectrum of clients looking to plan for the future.
If, therefore, you have clients holding assets standing at large unrealised gains who wish to plan for a future disposal this planning may be of interest to them.
If you have any queries regarding the above you will not hesitate to contact your usual Premier Strategies contact.
The Directors
Matt Hall - mhall@premier-strategies.com
Richard Coombs - rcoombs@premier-strategies.com
Mark Edmond - medmond@premier-strategies.com
Julie White - jwhite@premier-strategies.com
