Capital Gains Tax Shares 2007 (Taper Relief)

Lucky777

Hi Everyone

New here but thought i would run this query past you guys as not having much luck with accountants or HMRC.

Basically HMRC lost all my tax return paperwork regarding a capital gains tax issue from 2007 but thank god put the cheque of £21,000 on my account.

They have now refunded me all the penalties and as such are asking for new completed paperwork.
My accountant that prepared this has dissapeared and as such have had to start afresh with a new accountant..

To cut a long story short the gain was £100,000 on the shares and my new accountant is saying there needs to be paid another £15,000 in total £36,000 (£21,000 still with HMRC)

My question is Taper relief/business assets....
Basically am i entitled to these as there is a hell of a difference in tax payable.
I didnt own over 5% of the company and was a higher paid tax payer.

Have spoken to HMRC and there specialists are a bit vague

:wall:

Thanks in advance for shedding any light on this issue

Lucky777

Bump.........

holly_hobby

Too little info given in your post, but surely you've asked your accountant this question ?

But in the absence of this, refer to the attached links and HMRC site in general,

http://www.hmrc.gov.uk/manuals/cgmanual/cg17904.htm

http://www.hmrc.gov.uk/cgt/shares/index.htm

http://www.hmrc.gov.uk/manuals/cgmanual/index.htm

However, I'm a little baffled why you are on here when you're paying a professional for tax guidance.

Hope this helps

Holly

pjclar02

If it was an unquoted trading company, then there is no requirement to hold 5% of the shares in order to qualify for business asset taper relief.

Lucky777

Thanks for your response
If the unquoted company sold equity shares and then floated two years later is this classsed as a business asset.
Thanks in advance

To the o.p. I have an accountant but unfortunately have received three totaly different opinions on taper relief/buisness asset in the last few weeks.

pjclar02

If it was an unquoted company when you sold your shares it is irrelevant what happened subsequently.

Lucky777

Hi

I had the equity shares for two years until the company listed on LSE.
The company continues to be listed whilst i have left the company soon after the float.

Its this definition of buiness assets that is very hard to nail down

Thanks in advance

pjclar02

In which case, from memory you have a mixed use asset, so the gain will be apportioned between business and non-business use.

Lucky777

Many Thanks,
I will mention this information to my accountant and hopefully reduce my taxable gain..