Capital Gains Tax and the latest Budget

The latest Budget has increased the value of the gains on the sale of your business which will only be taxed at 10%. Until 5 April 2010 the level was £1 million, from 6 April 2010 until 22 June 2010 it rose to £2 million and from 23 June 2010 it increased significantly to £5 million. Any excess gains – during your lifetime – over the limit will be taxed at 28%.

The sale of non-business assets will result in a 28% liability unless you are basic rate taxpayer when some of the gain may be liable at only 18%.  In cases such as these it would be helpful to transfer a share of the asset that is not jointly owned already to a spouse or civil partner as they will have their annual exemption available and some of the excess may only be assessed at 18%

P46(Car)

Since 6 April 2009 the Revenue have not wanted employers to submit form P46 (Car) when a car provided to an employee is replaced with another one. However, you must submit the form if;

1. You provide an employee/director with their very first car which is available for private use;
    
2. You provide them with a second or further car available for private use;
    
3. An employee has a company car but now starts to earn at the rate of £8,500 per year, or they become a director (where their rate of pay does not matter.)