SEARCH, INDEX, UPDATES, CONTENTS, SERVICES, TAX PLANNING, CAPITAL GAINS TAX
Annual Exemption
During the year to 5 April 2002, every UK resident, man, woman, and child
has the opportunity to realise a gain of £7,500 tax free (£7,200 for year to 5
April 2001). Is everyone in
your family using their Annual Capital Gains Tax Exemption?
There are restrictions on the transfer of assets to members of your family which we can discuss with you.
We cannot tell you how to make the necessary gain each year, but we will quantify your realised and potential gains. You can then act to maximise your use of the exemption.
The Matching Rules
For many years it was possible to "bed and breakfast"
shares. This phrase described selling shares at the end of one trading
day, establishing a gain or loss, and buying the same shares back the next
morning, before the price had changed, only incurring a dealing cost. In
order to prevent this tax saving device from being effective a 30 day rule was
introduced. This means that acquisitions up to 5 May 2002 may have to be
taken into account in calculating disposals for the tax year to 5 April 2002.
For all disposals after 5 April 1998 the order of matching for share sales is -
Calculations
Print the CGT Calculation Request, complete it and
post it to us with a cheque for £25 payable to Fowles Spurling Cannon for each
proposed calculation.
The rules on calculating gains are complex, especially on some shareholdings, and sometimes gives some very unexpected results.
If your calculation is too complicated for this scheme we will contact you and agree our charges or return your cheque. We can also agree a different charging basis for multiple calculations.
It is important that you supply us with all the relevant information at one time. We cannot be responsible for incorrect calculations if you do not give us full and correct details
Reminder - disclaimer applies. Please feedback your comments. This page was last modified 14 April 2002.