ER was introduced in 2008 as a replacement for the old systems of taper relief and retirement relief
. Its value has crept up over the years, such that the relief is potentially worth up to PS1m to a taxpayer, as it allows certain disposals to be taxed at 10% rather than the prevailing capital gains tax rate of 20%.
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.
And it's using some very old (some would say out of context!) 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".
Andy Kay, corporate finance director at Horwath Corporate Finance in the Midlands, says they will need to get advisers on the case if a decade of government tax changes is not to catch them out.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
I was very happy to read the article on retirement and Social Security benefits (Notepad: "Retirement Relief
The new relief is based broadly on the now extinct 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).
But, in an attempt to quell criticism, the Treasury is set to announce a new "retirement relief
fund" which would provide those people with an exemption on profits of up to 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.