With smart planning, you can avoid unexpected tax surprises when retiring or selling your practice. Key concerns are Capital Gains Tax (CGT) and Inheritance Tax (IHT).
Planning ahead helps manage current and future tax liabilities.
Capital Gains Tax (CGT):
- Payable when selling an asset like a practice or property.
- Rates vary based on your income and the type of asset.
- Proper planning can reduce CGT, such as using allowances and losses.
- Use your Annual Exempt Amount to your advantage.
Inheritance Tax (IHT):
- Set up a Will to ensure tax-efficient distribution.
- Avoid intestacy rules and potential IHT charges.
- Consider trusts to transfer assets with minimal tax consequences.
- Know your IHT allowances, like Nil Rate Band and Residence Nil Rate Band.
Business Property Relief:
- Plan carefully to exclude dental business value from IHT.
- Gifts during your lifetime can be tax-free after 7 years.
- Gift assets like shares to reduce family income tax while planning succession.
- Seek advice to avoid unexpected tax consequences.
Consult with one of our professionals to ensure a smooth and tax-efficient retirement or sale.