Capital Gains

The government has scrapped plans to abolish the capital gains tax (CGT) main residence election.

Treasury officials intended to replace the measure with fact-based tests to decide which property would benefit from only or main residence relief, as part of proposals to implement a CGT charge on UK non-residents.

But a change of policy means a non-residents investing in UK residential property and UK residents investing in non-UK property will instead have to meet an occupation requirements.

J B Williams (TC4144)

Capital gains will remain eligible for entrepreneurs’ relief (ER) when realised even when they have been deferred into investments that qualify for the enterprise investment scheme or social investment tax relief, the chancellor announced in yesterday’s autumn statement.

The measure takes immediate effect, and is good news for taxpayers wishing to re-invest gains into unquoted trading companies. The previous system saw such investors facing the full capital gains tax (CGT) rate of 28%, rather than ER’s 10%

Will entrepreneurs’ relief be due on shares in a company that lets a holiday flat?

E Blaney (TC4103)

Farm capital gains; It’s a gas; Pension plans; Plot development

Careless error penalties: their application and consequences

What to look for in the changing face of the ATED

The effect of substantial company cash balances on entrepreneurs’ relief.

N M F Trigg (TC4079)

Can previous non-business use be ignored in a capital gains tax entrepreneurs’ relief claim?

The picture that emerges from cases of only or main residence relief