Talk to the Taxperts

01382 312100

Tax Matters

The COVID-19 pandemic and respective lockdown has had a massive economic impact, resulting in a reduction in the value of many properties, investment portfolios and businesses. As we transition out of lockdown, the future is still uncertain as we revert slowly towards normality.

With reduced market values, there may be opportunities to take advantage of. We recommend that you consider the following:

  • Lower asset values may allow easier, and more tax efficient succession planning for family businesses.
  • Transferring shares in the family business to the next generation, potentially resulting in lower Capital Gains Tax. It also retains the value of any future recovery in the value outside the transferor’s estate.
  • Currently the capital tax rates are generally favourable, however, the recent significant government spend may result in increases in future capital tax rates. Reliefs available in relation to Capital Gains Tax and Inheritance Tax may be under threat and the Government has, or is, consulting about both just now. Should you take advantage of the current rates and reliefs sooner rather than later as they might not be there next year? Remember the next Budget is scheduled for late November 2020.
  • There will be a number of business owners who are looking to retire. Are there any business opportunities out there available at reduced prices? Conversations with clients will identify potential opportunities for both buyer and seller.
  • Inheritance Tax planning will normally involve gifting of assets. As noted above, these assets can not only be gifted at a lower value potentially, but assuming the donor survives 7 years from the date of the gift, the asset can come out of the donor’s estate and reduce any Inheritance Tax liability.

Change can be a threat, but it can also provide huge opportunities for high net worth individuals and business owners. It’s well worth having the conversation about what the future might hold and how best to take advantage of opportunities presented. We can offer our advice and support so please get in touch with our taxperts to discuss your circumstances.

Latest News

View all latest news

February 9, 2024

Let Me Entertain You!

A client recently contacted us to ask about the tax implications for booking tickets for the Six Nations Rugby Championship. He was considering inviting both clients and staff…

January 3, 2024

New Year, New Tax Changes

With the start of another year, it’s time to think about the changes that lie ahead. Instead of skipping ahead to 1 April or 5 April, this year…

Download our EQ app and keep up to date with tax news, changes and have access to our EQ Portal, tax calculators and key tax dates at your fingertips. Click on the relevant button on your device to download our free app.

Visit EQ Accountants Visit EQ Accountants

Explore the full range of EQ Expertise