Capital Taxes – planning 2011

  1. The new government has indicated that CGT retirement relief will be revised in the Budget for 2012, due in December 2011. It is not clear what is intended, but the indications are that the relief will be curtailed. Where a shareholder in a trading company currently qualifies for retirement relief, it may be possible to transfer the trade to a new company, leaving the old company to be liquidated, with the shareholders claiming retirement relief.
  2. With the fall in property prices, now might be the opportune time to transfer assets to the next generation.
  3. Revenue consider that that CAT agricultural relief and business relief at 90% are too generous and should be scaled back in the next Budget.
  4. Given the difficulty in obtaining finance from banks, in cases where a company holds surplus cash, it may be possible for example to transfer property to the company in exchange for cash. At present, cash is superior to property in many cases.

If clients or others wish to consider the advantages and potential pitfalls in taking action in relation to the foregoing, or indeed other aspects of taxation planning, we can arrange an initial consultation free of charge, to consider whether there are potential tax savings to be made. Please contact Declan Long or Claire Condron in the first instance to arrange an appointment.