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Facing a CGT Bill on Selling a Property or Other Investment?

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We do from time to time meet clients who feel constrained by the unrealised gains on portfolios of property or share investments. In some  cases, these are more elderly clients who are also concerned about the Inheritance Tax bill that could be facing their family.

Thankfully, there are ways to mitigate the tax implications of selling down investments such as these.  Suppose, for example, that you have sold an asset for £500,000 thereby crystallising a gain of £200,000 on the price you paid. How could you save the unwelcome Capital Gains Tax liability on the £200,000 gain?  And how could you reduce your exposure to Inheritance Tax on your estate.

Investment of the gain (£200,000) into an Enterprise Investment Scheme will give:

deferral of the CGT liability on the gain you have made;

-CGT relief on future gains;

-Income tax relief at 30% on the sum invested ;

-Reduction in IHT exposure on your estate (after only 2 years) – as the investment qualifies for Business Property Relief.

From the balance of the proceeds, you could fund another investment qualifying for Business Property Relief. The whole of the net proceeds from the original investment could be put outside the IHT net.

Why not speak to us about how you could make some tax savings both for yourself and for your family?  You could even recover some tax you have already paid!

Call us at: SWLaw Investment  & Financial Planning Ltd  01752 205205

The minimum investment period is 3 years for EIS.

Summary of tax reliefs :


-Tax relief of 30% on initial investment (up to £1M)
-No tax on gains
-Deferral of a Capital Gains Tax liability where gain is reinvested in EIS
-Reduce Inheritance Tax exposure – qualifies for Business Property Relief after 2 years



The Enterprise Investment Scheme Association

HMRC Overview of reliefs on EIS investment