Capital Gains Tax

Many individuals and companies find themselves in need of capital gains tax advice. This is due to the intricate nature of capital gains tax and its far-reaching implications. Whether you’re an investor, a business owner, or involved in property, having a firm grasp of this tax aspect can result in substantial financial benefits and ensure compliance with HM Revenue & Customs.
Expert guidance is invaluable in making informed decisions about selling assets, managing investments, and devising estate plans. Our capital gains tax experts can help you navigate the complexities of tax legislation, discover potential exemptions, and implement tax-saving strategies like tax-loss harvesting or asset gifting.

What Assets Are Chargeable To Capital Gains Tax?

The disposal of an asset could be subject to Capital Gains Tax, unless that asset is considered exempt. Common chargeable assets include:
Your main residence, unless fully covered by private residence relief.
• Commercial property
• Rental property
• Shares (excluding those held in ISA or PEP)
• Business assets
• Personal property worth over £6,000 (excluding your car)

When you sell an asset where a profit is realised, this is considered a capital gain, therefore any asset which has increased in value is subject to the tax. If the gains for the tax year fall before your annual exemption, no tax liability will arise, but the computations still need to be prepared and submitted to HM Revenue & Customs. Calculating Capital Gains Tax can be challenging, and the rules are complex, in particular the valuable tax reliefs.

Chargeable assets can vary in their liabilities under Capital Gains Tax legislation. Certain reliefs are available on selected assets, for which a lower tax rate is charged. If you sell an asset that is jointly owned, you will be liable for Capital Gains Tax on your share.

It is common for property assets to far exceed the annual exemption, which can make Capital Gains Tax very expensive, particularly in combination with your income tax liability. Yet many landlords and investors are paying far too much tax when selling their property asset, without the proper knowledge of any reliefs or allowances available to them.

Disposals of residential property made on or after 6 April 2020 must be reported online and the tax paid within 60 days of completion.

This is why it is so important to have a qualified Capital Gains Tax accountant, to ensure that you are claiming all eligible reliefs to bring down your CGT liabilities wherever possible. We will examine your records in depth, keeping you fully informed throughout the process, ascertaining any reliefs to which you may be entitled.