13 Jun 2018
Capital Gains Tax (CGT) is not payable by limited companies or unincorporated associations when they sell an asset and make a gain. Instead, the gain (proceeds less any allowable costs and reliefs) is subject to Corporation Tax at the applicable rate, currently 19%. There are various allowances and reliefs available that can reduce the amount of Corporation Tax payable.
Until 31 December 2017, there was also an indexation allowance for corporate chargeable gains. The indexation allowance was used by companies to remove the effect of inflation when calculating any chargeable gains that they made.
The monthly indexation allowance was frozen from 1 January 2018. This means that the indexation relief available for any gain after 1 January 2018 will be calculated based on the indexation allowance between the date the asset was acquired and the end of December 2017 regardless of the date the asset is disposed of. Any assets purchased after 1 January 2018 have no indexation allowance associated with them.
This change effectively brought the corporate tax system into line with personal Capital Gains Tax and non-incorporated businesses for whom indexation allowance was abolished in 2008. There is no annual exemption for chargeable gains for companies as is the case for individuals.
A company can also reduce their total chargeable gains by deducting any capital losses. Any loss claimed will be reduced by any amount that was claimed for capital allowances.
Vada Studios is a very successful music recording facility. The business had outgrown their existing premises, and had a vision to create one of the top residential recording studios in the UK.
A highly successful restaurant, butcher and retail business.
GJA have been the retained accountants for this property investment and development group for over 20 years. Imminently due to dissolve companies.
Proco approached us with an idea of becoming a distributor of a high-end product in the UK, supplying vinyl nationally.
In 2008 Tom Floate left his employer to set up his own business providing website services. Initially forming a partnership with his wife Rachel, they began trading IO Studios from their home office.
Barry the Butcher is a very successful wholesale butchery and retail business.
Chris works with a diverse profile of owner managed businesses to assist them to grow and retain wealth. Although Chris works with clients from a wide range of sectors, he has particular expertise in property, catering, consultancy and professional services.
Managing Director ACMA
Alex has worked for Grenfell James since 2002 and became a director in 2013. Overseeing our internal operations, he manages the flow of work and ensures we hit our strict deadlines. Alex also manages a portfolio of clients, with expertise in manufacturing and service businesses.
Operational Director MAAT
David has worked for Grenfell James since 2006. He heads up our tax team and is highly experienced with expertise in different industries and sectors.
Tax Director ACCA
Hannah qualified in 2016, having worked for the company since 2009. She acts as a client manager for a range of businesses, with expert knowledge of the equestrian and rural sector. Hannah also manages our payroll team.
Client Manager ACCA
Dean. Wootton IT
Roy Ferguson. The Perfect Cosmetics Company.
Mckechnies independent tea and coffee bar.
Andrew Knight. The Howard Arms Ilmington
Proco Coatings & Laminates
Mr J McCarthy
NPD Design Consultants Ltd
Regent Square Estates
Paul Stanley. A S Contracts Ltd.
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