TaxAdministrationLord Sainsbury manoeuvre saves £27m in CGT

Lord Sainsbury manoeuvre saves £27m in CGT

Lord Sainsbury’s transfer of £340m worth of shares avoids the CGT changes, saving him more than £27m

Labour peer Lord Sainsbury has transferred £340m worth of shares he
personally owned to a company he controls, reportedly saving him more than £27m
by avoiding the controversial changes to the capital gains tax (CGT) regime.

The peer transferred 92m of his shares yesterday to Innotech Advisers, just
in time for him to pay CGT at the lower rate of 10% before it rises to a flat
rate of 18% on Sunday – or £34m compared with the £61.2m he would be taxed if he
sold the shares next week, according to The Daily Mail.

The transfer was made in the expectation that he will on-sell the shares at a
later date, when the tax will be less than if he had continued to keep the
shares in his name.

A spokesperson for Lord Sainsbury said the peer would not make any profit
himself from transferring the shares, which he inherited on the death of his
father, and that he intended to use the money for charitable donations.

Further reading:

Business owners sell to beat CGT hike

Read
story in The Daily Mail

Related Articles

LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

2d Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

2w Emma Smith, Managing Editor
HMRC issues updated Trusts Registration Service guidance

Administration HMRC issues updated Trusts Registration Service guidance

2w Emma Smith, Managing Editor
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
‘Improve rather than lose’ disincorporation relief, tax body urges

Administration ‘Improve rather than lose’ disincorporation relief, tax body urges

3m Austin Clark, Reporter
Are you ready for the Trusts Registration Service?

Administration Are you ready for the Trusts Registration Service?

3m Helen Thornley, ATT Technical Officer
Advisers bullish despite Brexit concerns

Accounting Standards Advisers bullish despite Brexit concerns

1y Fraser Simpson, Reporter
Brexit: Five questions accountants should be asking

Accounting Firms Brexit: Five questions accountants should be asking

1y Fraser Simpson, Reporter