What are Capital Taxes?
We at Morgan McManus have developed a substantial Capital Taxes practice within the last decade. Capital Taxes typically cover the following tax heads:
- Inheritance Tax
- Gift Tax
- Capital Gains Tax
- Stamp Duty
- Discretionary Trust Tax
Capital Taxes are something that will affect all of us at some stage, either during our lives or upon our death. Death and Taxes are often cited as being two of life’s certainties, but knowing when Capital Taxes apply is less certain.
One needs to be aware of the effect of Capital Taxes when one buys or sells an assets or business, gives or receives a gift, makes a Will, receives an inheritance. While our colleagues in the accounting profession constantly deal with “Revenue” Taxes, such as Income Tax, Corporation Tax and VAT, “Capital” Taxes tend to arise on a less frequent basis and, therefore, can often require the assistance of experts in order to deal with the tax implications of a transaction after it has happened, or indeed to plan one’s affairs in such a way as to minimise such taxes.
Tax planning in this area would involve inheritance tax planning, gift tax planning, estate planning for owner managed businesses, tax issues in the transfer of a family business, cross-border estate planning, residency issues relating to tax residency and domicile and the tax implications of Trusts.
What are the main Reliefs & Exemptions?
We are happy to advise and deal with the various Relief and Exemptions that exist under the main Capital Tax headings. The main Reliefs and Exemptions available under Gift and Inheritance Tax are:
- Small Gifts Exemption
- Gifts or Inheritances from Spouse
- Objects of National Interest
- Retirement Payments
- Certain Securities
- Certain Insurance Policies
- Certain Inheritances taken by Parents
- Exemptions relating to retirement benefits
- Disclaimers of Gifts / Inheritances
- Agricultural Relief
- Business Relief
- Favourite Nephew Relief
- Relief from Double Aggregation
- Double Taxation Relief
- Relief for Capital Gains Tax Paid
- Relief for Acquisition by a Company of its own shares
- Annual Exemption
- Non Chargeable Assets
- Life Assurance Policies and Deferred Life Annuities
- Annuities and Covenants
- Disposal of Interest in Settle Property
- Superannuation Funds and Schemes
- EC Scheme for retirement of farmers
- Miscellaneous Receipts and Windfalls
- compensation and Insurance Receipts
- Disposal of a business to a Company
- Retirement Relief
- Principal Private Residence Relief
- Disposal of a Site to a Child
- Reconstructions and Amalgamations
- Group Relief
- Miscellaneous Reliefs
Stamp Duty Exemptions
- New Houses and Apartments
- First Time Buyers
- Transfer of a Site to a Child
Stamp Duty Reliefs
- Consanguinity (Blood Relative) Relief
- Associated Companies
- Company Reorganisations
- Certain Mortgages
- Transfers to Young Farmers
- Farm Consolidation Relief
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