Summer 2004 Newsletter Content Still Good Company You Cannot Be Serious! Van For The Money Double Joint Account What's Final? From Cradle... ...To Grave Home Office Property Perils One Day At A Time Two Into One Will Go Home-A-Loan Breaking The Code Europe Expands Personal Services Civil Partnerships His And Hers Contract Time E-Filing Shop Yourself

...To Grave Most people who run businesses now know that you ought to pay only 10% CGT on the disposal of business assets that you have owned for at least two years, because of the favourable 'business assets taper relief'. That's the good news. There are always catches in tax, and it's important to be aware of things that can raise your tax rate (and your heart rate, when you see the bill). The full taper relief is only given if the asset is a 'business asset' throughout your ownership of it. Suppose you set up a company and run it as a trade for five years, then you sell the trade for cash, and liquidate the company. No problem? Well, it usually takes a little while from the sale of the trade to the end of the liquidation, and during that time the company doesn't count as a business asset because it isn't trading - it's just a cash shell. So for every day that it takes to wind up the company, the tax rate on the eventual gain is creeping up. There are things you can do in this circumstance, and we will be happy to advise you about them. The main thing is to remember that business assets taper relief is not automatic, and you should never assume that it is available without any catches.