Capital Gains Tax
What we will cover:
- Basic principles of CGT, including when a capital gain is triggered and when it must be reported
- CGT calculations and clear worked examples modelling the method of how to calculate your CGT
- Scenario work and formulas for calculating CGT for landlords who have lived in a property before or after letting it out
- The relationship between Income Tax and CGT
- Deductible expenditure including how to manage these as a new landlord
- Reliefs, exemptions and allowances – timing is everything!
- Strategies for mitigating CGT including succession planning options
- The key conceptual relationship between CGT and IHT
- The considerations of avoidance as to evasion in tax planning
- What happened to my gain when/if I incorporate?
- How can I use my AEA every year? – are you wasting yours?
Please note due to copyright law a pack of the key slides will be made available after the course. The eCLassroom course format is not recorded for the same reason.
Objectives
- Understand the basic concepts of CGT
- Familiarise CGT jargon and terminology
- Understand the key relationships between the other big beasts - Income Tax and IHT
- Gain practical experience of CGT with scenario work – bring your calculators!
- Understand the relationship between CGT and IHT
- Ability to approach the method and calculation of CGT
- How to reduce your CGT liability – timing is everything!
- Awareness of available reliefs and exemptions to lower your tax bill
Background
Capital Gains Tax (CGT) can have an impact for landlords if it is not understood and managed. However, there are many reliefs and exemptions available every year which are lost if not used. This course will explain the theory behind CGT and how to mitigate it, and you will learn about reliefs, allowances and how to use and maximise them to mitigate or remove your tax liability. The trainer will use worked examples to illustrate the basic principles of calculating CGT including how the fractions work and formulas when a landlord has lived in a property before or after it has been let.
The course is unique as throughout you will be given the opportunity to apply the key CGT concepts, methods and formulas to CGT scenarios familiar to all landlords, so make sure you bring your calculators!
Please note: The course materials for this course will be emailed out after the course has taken place and the eClassroom version of this course is not recorded.
This training course qualifies for 5 continuous professional development (CPD) points which can help towards or maintain your accreditation with the NRLA. If you are interested in becoming an accredited landlord with the NRLA, CPD points are necessary to achieve that status.
NRLA Accreditation recognises landlords who have agreed to maintain professional standards in the management and maintenance of their rented property and deal fairly and professionally with their tenants. Accredited members demonstrate their knowledge and understanding of their responsibilities and obligations and strive to maintain, increase and improve their knowledge of the market through training and development. CPD points are awarded for all activities which improve those attributes and are a requisite of membership of the NRLA Accreditation Scheme.
For more details visit the accreditation section on the website.
Suitable for
- New landlords who need to understand tax obligations
- Investment landlords
- Landlords considering extending/reducing portfolio