CAPITAL GAINS TAX:  

Generally capital gains are calculated by deducting the purchase costs of the asset from it’s sale proceeds. Tax is charged on the resultant gain at a rate
of 18%.

For gains accrued by the sale of a business, it may be possible to claim “entrepreneur’s relief” on gains of up to £1,000,000 to reduce the tax rate to 10%. Individuals may claim an exemption deduction of £9600(currently) from gains, before charging them to tax. It should be appreciated that Companies are not able to claim this exemption.

Husband and Wives may transfer assets to one another without attracting any taxable gain, and death is not regarded as an occasion of charge for capital gains tax purposes. Transfers between family members or “connected persons” must be at market value.

This is a complex subject, especially in regard to let property, and it is advisable to seek the assistance of a Tax Advisor.