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.
Individuals CGT
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.
Businesses CGT
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
Complete 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
love us
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.
Further complications
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.
Chargeable assets
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
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.
Need help with Capital Gains Tax
Speak to one of our Qualified Tax Advisor to see how we can help!
020-8577-0200
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.
| Type of Asset | Basic Rate | Higher Rate |
|---|---|---|
| Shares | 10% | 20% |
| Residential Property | 18% | 28% |
| Bitcoin Cryptocurrency | 10% | 20% |
| Other | 10% | 20% |
What about gifts or inheritance assets received?
Gifts
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.
Inheritance
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.
Fusion Services
We provide a comprehensive range of accounting and tax services to help launch your new venture.
FAQ ‘s
What is a chargeable disposal under capital gain tax?
If you sell, gift or swap an asset which has increased in value or if you get compensation against a lost or damaged asset, it will be considered as chargeable disposal subject to capital gains tax.
What is the date of disposal?
The date of disposal for CGT purpose is the date when the unconditional contracts are signed by the parties.
How to calculate capital gain?
Capital gain tax is not levied on the amount you receive but on the amount of gain you make from the disposal of the asset. chargeable gain is calculated as the difference between sale proceeds or asset market value at the time of disposal and the original cost of the asset (including any enhancement) when it was purchased or acquired.
Are there any assets exempt from CGT?
Sale of private motor cars/vintage cars, gifts to registered charities/husband/wife and civil partner, prizes, and betting money, investments in ISA, and cash are exempt from capital gain tax.
I have inherited a property; do I need to pay CGT?
You do not need to pay any CGT on the property inherited. CGT will only trigger when you dispose of the property.
How and when to report my CGT liability on the disposal of property in UK?
If you sold the property after 27 October 2021, report and pay CGT within 60 days of selling it. If you sold the property between 6 April 2020 and 26 October 2021, report and pay CGT within 30 days of its sale. If you sold the property before 6 April 2020, report the gain in tax return following the sale.
Do I need to pay CGT on my overseas assets?
Generally, if you are domiciled and resident in the UK, you may need to pay tax on your worldwide income and gains. However, you may get relief for the tax paid in a foreign country under a Double tax agreement.
Do I need to pay CGT on selling my crypto assets?
HMRC normally regards the disposal of crypto assets as capital disposal giving rise to capital gains or losses.
What if I make losses on the disposal of my assets?
If you make a loss on disposal of your capital assets, you can carry forward that loss to set it against future capital gains.
What are the changes to capital gains tax in 2023?
From April 2023, the annual exemption allowance for capital gains has been reduced from £12300 to £6,000. This will get further reduction by £3000 from April 2024.