Capital
Gains
The flat rate of 20% applicable to Capital Gains has
increased the frequency of Capital transactions. Therefore,
Capital Gains Tax planning has become more important in the
past few years.
Payment dates have been accelerated for Capital Gains Tax
and various tax-relief's that were previously introduced to
stimulate investment in various industry sectors and to
support social infrastructure and family enterprises were
abolished.
The date of the relevant contract for sale has now become
more important than ever in relation to the ultimate timing
of the payment of Capital Gains Tax.
Further, the restriction of indexation relief in the
future will increase the effective rate of tax applicable to
relevant disposals while still retaining the appearance of a
low rate of 20%, which of course, the Minister has the
discretion to increase at any point, should he so wish.
We can provide expert advice if your are considering
entering into any transaction which may trigger Capital
Gains Tax from computing potential liabilities to suggesting
alternative approaches.
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