Tax Efficient Services
Cunningham Coates Stockbrokers can provide specialist advice
on Venture Capital Trusts and the associated tax benefits.
VCTs were introduced 10 years ago to encourage private investors
to fund small and medium sized companies. VCT’s are
required to invest 70% of their assets into such firms over
three years. In recognition of the high risks associated
with investing in this dynamic sector of the economy, VCTs
have always afforded investors a number of tax reliefs. In
addition to the upfront income tax relief of 40% (provided
the shares have been held for 3 years), any dividends paid
out by the VCT are tax-free and there is no capital gains
tax to pay on the subsequent disposal of the shares (except
in relation to shares subscribed for prior to 5th April 2004
upon which gains have been deferred).
Where capital gains tax annual allowances are exceeded,
Enterprise Investment Schemes can defer the liability under
the rules of scheme. EISs also provide income tax relief
when held for 3 years and any gain on disposal, for those
shares qualifying on subscription, are exempt from CGT. In
addition, provided the shares have been held for 2 or more
years at the time of death, there will be no IHT liability.
Cunningham Coates Stockbrokers can provide investment advice
in this extremely specialised and high risk sector.
Further tax advantages are also available through investing
in Cunningham Coates Stockbrokers ISAs, which remain free
from CGT and higher rate income tax. We also manage PEPs
and continue to accept transfers.
Inheritance Tax Planning
Due to the rising value of residential property, an increasing
number of people find themselves faced with a potential Inheritance
Tax liability. Cunningham Coates Stockbrokers can assist
with comprehensive Inheritance Tax planning including but
not limited to, the use of suitable Trusts, annual gifting,
potentially exempt transfers and AIM portfolios. This can
be undertaken in conjuction with other professional advisors.
Capital Gains Tax Computations
Cunningham Coates Stockbrokers can provide capital gains
tax computations and information for tax purposes including
the history of share holdings and 1982 prices. Powerful CGT
software calculates the impact of disposals and can be used
in a predictive manner for ‘what if’ computations.
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