Capital Gains Tax advice
Your Capital Gains Tax specialist
Selling a property, shares or your business?
We provide a complete fully rounded capital gains service.
Discuss all tax planning options available, so you don’t pay more than you need to.
- Supporting 100’s of landlords and property investors
- Disposal options & eligible tax relief
- Handle entire tax return process
- Assist with rules, reliefs, and exemptions
What is Capital Gains Tax (CGT)?
A tax levied on the profit made on the sale of any non-inventory qualifying assets is called Capital Gains Tax. When sold, bonds, stocks, property, real estate, and precious metals are subjected to CGT. If you make any gains, you may be liable to pay taxes. The amount of tax chargeable will differ depending on the type of asset, how long it was held, how the asset was utilised etc.
This can be from the disposal of personal possessions such as coins and jewellery, shares (excluding ISAs & PEPs) worth £6,000 or more, or on the sale of a second property.
Capital Gains Tax may have to be paid if a profit is made when all or part of a business or business assets is sold, including land and buildings, fixtures and fittings, machinery or shares.
Our Capital Gains Tax service
Our CGT service includes planning your disposal, determining your options and filing your CGT return. Preparing to buy or sell assets can save a lot of tax.
No matter how complicated your tax return is, our expert tax adviser will guide you through it step-by-step. No more loneliness or burdens.
Advice from qualified staff
We are qualified tax advisors and are regulated by the Association of Taxation Technicians (ATT) and the Institute of Chartered Accountants in England & Wales (ICAEW).
CGT is a complex area of taxation and generally relates to any chargeable gains made on the sale of high-value items such as property or shares. We have years of experience helping our clients with CGT, ensuring you make the most of any tax reliefs available and plan your disposal to avoid paying any additional fees to HMRC and minimise your tax liability.
Why our clients
Residential & commercial properties
Residential property is one of the most common forms of Capital Gains Tax paid in the UK. Although your private residence is usually outside the scope of CGT, things can become slightly more complicated if you rent out your property as a Furnished Holiday Let for a period of time.
On the other hand, buy-to-let properties are almost always subject to CGT when the property is sold at a profit.
- Letting Relief - only available to landlords in certain circumstances and can reduce your CGT liability by up to £40,000.
- Private Residence Relief - for the period you have lived in the property yourself.
We have helped hundreds of landlords and investors calculate CGT. However, our tax planning service goes beyond just calculating taxes. Using our expertise, we present you with options to make informed choices.
Shares & stock investments
On the disposal of shares, special rules apply to Capital Gains when compared to standard capital gains calculations. This is because individuals may buy and sell shares from the same company at different prices and at different periods in time.
When shares are mixed in such a way, it may be challenging to establish which shares are being sold and their purchase price at the time of sale.
Share matching rule applied on shares
The Share Matching Rule needs to be applied to the sale of shares. This rule applies to individuals only and does not apply to companies.
There are three matching rules:
- If an individual disposes of shares, he is first deemed to have sold any shares he acquired on the same day.
- Next, the shareholder is deemed to have sold any shares he acquired in the following 30 days.
- Finally, the disposals will be matched with all other share acquisitions which are “pooled” together and form one asset for CGT purposes. These assets are called section 104 pools.
Other difficulties can occur when there is a bonus issue, a rights issue, a free issue, or a business take-over. All of these require different treatments when calculating gains on shares.
Possessions such as antiques and collectables are called chattels. Gains on some are tax-free. Items with 50 years or fewer (known as ‘wasting assets’) are CGT-free. Items such as pleasure boats, vintage cars and caravans are classed as wasting assets.
Tax rates and the calculation of gains differ based on the type of asset in question. Also, your tax band will make a difference; for example, if you are a basic rate taxpayer, you’ll pay 10%, whereas higher rate taxpayers will pay 20%. Finally, any gains themselves may temporarily push you to a higher tax band.
Capital gains tax rates for the tax year 2020/2021
You only pay tax on any net realised gain/profit that goes over your Annual Exempt Amount (your tax-free allowance), which for 2020/21 is set at £12,300.
It is crucial to keep in mind that you usually are not levied to pay any Capital Gains Tax if you sell your main home and not your second home.
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What about gifts or inheritance assets received?
Gifts received from family (grandparents or parents, but not from a spouse or civil partner) can be subject to Capital Gains Tax. Therefore, valuation and CGT calculation may be required at the time of the gift’s disposal. Please speak to us if you need further advice.
Property received through inheritance is subject to CGT when you sell it on. At this point, CGT calculation will need to be carried out, which will include the value of the property when inherited, any capital costs incurred since then by yourself etc, to determine the CGT liability.