Passing assets and wealth to the next generation may be good planning for inheritance tax purposes but if not carefully planned can lead to an unexpected and unwelcome capital gains tax charge. CGT is not just applicable to sales of assets where you make a gain but can also apply to gifts of assets particularly to relatives and associates.
This part of the course looks at how capital gains tax can arise when transferring assets to the next generation and how to mitigate this charge. In particular we look at :-
- the principles of the capital gains tax charge
- business and non-business assets
- the annual exemption
- valuation
- chattel relief
- principle private residence relief
- quoted and unquoted shares
- postponing or accelerating the CGT charge
- notifying HMRC of gains and losses
