Convert to Ltd
Following the recent budget announcement on or after the 6th April 2008, a new single rate of charge to CGT at 18% will apply. A number of changes have been made including the removal of the taper relief but the Annual Exempt amount [AEM] will remain. The current level for 2007-08 is £9200 for individuals.
DBF Associates are pleased to announce that we can now provide you with a Capital Gains Tax [CGT] strategy for sole traders and partnership. If your business is worth £100,000 or more, it may be worth changing your status to a 'limited' company. The overall result will be to reduce the tax bill for you and your business - see illustration below.
|
Scenario |
1 |
|
2 |
|
3 |
|
Net Gain |
£100,000 |
|
£200,000 |
|
£300,000 |
|
Taper Relief |
£75,000 |
|
£150,000 |
|
£225,000 |
|
Taxable Gain |
£25,000 |
|
£50,000 |
|
£75,000 |
|
AEM |
£9,000 |
|
£9,000 |
|
£9,000 |
|
|
|
|
|
|
|
|
Total |
£16,000 |
|
£41,000 |
|
£66,000 |
|
Tax @ 40% |
£6,400 |
|
£16,400 |
|
£26,400 |
|
Tax due after 06/04/08 |
£16,380 |
|
£34,380 |
|
£52,380 |
|
|
|
|
|
|
|
|
Saving |
£9,980 |
|
£17,980 |
|
£25,980 |
|
|
|
|
|
|
|
For further Informtion please contact:
Francis Walsh
