The current 40 years of age threshold for leasing relief will be axed and the Capital Gains Tax retirement relief
will be broadened to allow people to lease out their land for up to 25 years prior to selling it and still be eligible for the relief.
legal cases concerning Retirement Relief
to justify its approach to the disposal of furnished holiday lettings.
was allowed on the grounds that the sale by a farmer of any of the farmland was a disposal of "part of the business", with a farming business deemed as "the gaining of saleable produce, both animal and vegetable, from the occupation of land with the aim of earning a profit".
Mr Kay noted: "Several years ago, many company owners transferred all, or maybe just some, of their shares into life interest trusts to crystallise the capital gain on disposal and 'bank' the then available retirement relief
Unlike retirement relief
, however, there will be no minimum age limit and individuals will qualify if the relevant conditions are met for just one year (the qualifying period for retirement relief
was 10 years).
Stephen Alambritis of the Federation of Small Businesses said, "This really takes us back to 1998, when we had capital gains tax retirement relief
, although the exemption threshold then was much higher than pounds 100,000.
It was before 2003 and we capitalised on what was known as goodwill and claimed something called retirement relief
These include what is left of retirement relief
, business asset taper relief and your annual exemption.
If you are over 50, maximise retirement relief
when disposing of business assets.
Apart from the obvious danger about a business failing, the Budget this year has made a large dent in the future rewards of selling a business by phasing out Retirement Relief
COVENTRY tax specialists Grant Thornton is warning directors aged over 50 that retirement relief
on capital gains tax is phased out in April.
A If your father is over 50 and is forced to retire because of ill health, he is likely to qualify for Retirement Relief