'CAPITAL GAINS TAX RAISED TO 50%' - what this could mean for you



2015-06-26 12:02:26

'CAPITAL GAINS TAX RAISED TO 50%' - what this could mean for you

Many collectibles are 'wasting assets' or 'chattels' where no Capital Gains Tax is payable in the UK...

This could be the headline next week here in the UK... watch this space. This will again increase the relative returns on Collectibles as opposed to other assets... and we would like to show you how to make collecting tax free. Many collectibles are 'wasting assets' or 'chattels' where no Capital Gains Tax is payable in the UK. Whether you are building a collection for the long term, or developing your own personalised administered 'Pension Plan', the net result should be the same. We can help you to 'build a collection' in Collectibles, where it has proven historically to give a compound annual increase in value of 10% plus. We suggest, as well, that if you are married or in a civil partnership, you can split the collection, so that you can both make full use of the annual Capital Gains Tax exemption, which is currently 10.1K each... total 20.2K per couple. This allowance should continue to rise in future years, adding to the benefit. Whilst any financial decision should not be based solely on the tax implications, if the figure moves to 50% then it certainly becomes a more compelling reason. The list of 'wasting assets' includes: Classic cars, motorbikes, yachts, guns, watches, clocks, barometers, scientific instruments, model railways, some antique toys (even teddy bears), wine, whisky, and cigars. Also, gold sovereigns are exempt from CGT, and other CGT-FREE ASSETS include government bonds (Gilts), and some sterling-denominated corporate bonds, although income received on these bonds is subject to income tax. But returning to collectibles, you have a tangible asset, one you can control and enjoy, and watch appreciate in value. The current low inflation and low interest environment is a perfect time to get started, along with the huge expected increase in middle classes in the world with the higher overall disposable income that will come with that. There are an estimated 200 million serious collectors in the world, and this is set to double in the next 40 years, quite apart from pure investors who are now entering the market. Many of these 'wasting assets' do not come into inheritance tax calculations either, but you should get independent expert tax advice for both CGT and inheritance tax. Despite the worst recession for nearly a century, world record prices are being achieved every day in Collectibles, and this also helps uplift all prices lower down the value scale. Collectibles are a safe haven in these difficult financial times, and clearly with more collectors and investors flooding in daily it can only feed the demand and lessen the supply, which naturally pushes prices to a new higher level. The "Baby boomer" generation is moving through the system, along with many large institutional funds, that are testing the market, with an objective to go in even deeper once the model has been proven to them. It seems to us that the argument for investing at least a proportion of your wealth in collectibles is becoming overwhelming, and we can show you how to benefit on a long term basis. When it comes time to release material back into the market, we can show you how to do that effectively to give you both an income and an ongoing legacy collection. These are exciting times for collectibles, and we believe that they are still very undervalued in relation to other assets, and along with the tax benefits as discussed should add long term value and enjoyment for years to come. So, contact us now, and we can get started on helping you build a collection... and protect your wealth from unnecessary donations to the taxman!

+44 (0) 117 933 9503


Alternatively you can read all about the benefits of investing in collectibles here.


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