CGT Planning- impact on income tax

Question 1

what are the benefits of CGT planning?

Answer 1

• transfer assets to use AEA and capital losses b/f
• can transfer loss making asset
• transfer asset to spouse who has lowest tax rate
• delay disposal to use AEA next year
• cashflow advantage of delayed disposal
• selling assets in tranches likes shares sold in different tax years to use AEA each year.

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Question 2

what are CGT consequences on death?

Answer 2

• transferal of CGT on death are exempt
• ISa allowance can be transferred
• capital losses can be carried back LIFO basis after deducting AEA.

Question 3

CGT VS IHT

Answer 3

• asset gifted on death subject to IHT unless bpr, apr, charity
• asset