Capital Gains Tax Expertise

We assisted a client who had overseas trust assets of nearly £1,000,000 where the repatriation of the funds had been handled by a large firm of accountants. The capital gains treatment they applied was on a simple remittance basis so fully charged in that year. This resulted in a gain of £286,281 largely taxed at 40% so approximately £110,000 off!

Our client’s husband approached us to clarify the position. We were able to explain to our client that Section 87A of TCGA92 contained an alternative matching approach. The downside, and the reason this had not been done, was that there were transactions that needed to be matched. There was a very large transaction list going back over many years and no certainty that the rescaling calculation would be preferable. We were able to undertake this work for a fee of £750 to accurately match each transaction and calculate gains for the relevant tax years. As a result of this process, the gain was recalculated to be £84,311 and when sub-divided to beneficiaries a total liability of £9,873 instead of the original £110,000 saving approximately £100,000 of tax.

Both husband and wife were very pleased with this result and continue to be clients.