Capital Gains Tax & Inheritance Tax

Reducing the liability of an estate for Inheritance Tax is possible through simple, legitimate means. IHT – Inheritance Tax is due on value of assets of deceased, which can be reduced considerably with the right steps, including a will and testament, sound advice and temporary investments to fall outside the category of an estate for the purpose of IHT valuation.

At Target Accounting, we offer expert advice and assistance to testators on Business Property Relief (BPR) provisions to reduce exposure to IHT. Our services have helped a large number of individuals pass on their desired wealth to families, friends or cherished causes without stiff IHT liabilities, through legitimate provisions as per taxation laws. Our services include :

  • Assisting clients avail exemptions and relief
  • Advice to clients in restructuring business to make it eligible for BPR
  • Assistance to testators in drawing up a will, with tax considerations in mind to ensure beneficiaries enjoy assets and chattels
  • Assistance in wealth planning through trusts

A disposal of assets or investments that are either inherited or acquired will result in CGT or Capital Gains Tax. In other words, this voluntary tax is applicable on the gains made from the sale of capital assets. It is however possible to reduce exposure to CGT with expert inputs and cautious tax planning, with the added option of delaying the payment of CGT, and in a few instances, entirely avoid CGT.

We have consistently helped our clients to minimise Capital Gains Tax liability through one or a combination of the following services:

  • Claim permissible tax deductions – professional fees, indexation allowance, enhancement expenses
  • Claim eligible reliefs – entrepreneurs, principal private residence, lettings, market value re-basing, adjust against carried forward losses
  • Tax planning through pension funds and trusts
  • Deferred payment through reinvestment to claim permissible reliefs – rollover, holdover, EIS deferral
  • Spreading sale over different tax years to avail maximum reliefs by meeting the upper limit requirements

Target Accounting have earned a reputation of helping clients mitigate potential tax liabilities arising out of inheritance or capital gains, through a proper interpretation and application of relevant laws to claim reliefs and deductions permitted legally. Our experience shows that many clients have been unaware of the exemptions and reliefs that are available to reduce liability. Here, it is important to understand that some reliefs are inter-related and often interpreted in combination with other limits and exemptions. This requires an expert to handle the complex laws and clauses.  Our extensive knowledge and successful advice given to clients in managing inheritance, capital gains and intestacy has earned us a reputation as one of the most reliable and trusted advisory services.

One of the reasons for a large number of individuals coming under higher IHT slabs are the rising prices of real estate combined with a freeze in the rate band. With the right kind of planning, it is possible for individuals to ensure that beneficiaries of their estate do not end up paying very high taxes as a result of the inheritance.