- act - Tax Advice
Guidance on Capital Gains Tax
Explore the expertise of our expert capital gains tax consultants.
Considering selling business, shares or your property? Accountants 4 U offers a complete capital gains service, covering all characteristics. Accountants 4 U explore all available tax planning options to make sure you don’t overpay.
What is the Capital Gains Tax (CGT) in the UK?
Capital Gains Tax (CGT) is a tax which you might pay on the profit you make after selling something for more than you bought it for. This could comprise things like property, valuable collectibles, or event stocks. The amount rely on several factors, but usually, you don’t have to pay if the profit is below a certain amount.
Accountants 4 U can provide valued analysis to make sure a clear understanding of CGT implications and optimise your financial decisions.
Our CGT Services
Comprehensive Service
At Accountants 4 U, we offer a complete Capital Gains Tax (CGT) service that goes far beyond the basics. From planning the strategic disposal of your assets and exploring your options to filing your CGT return, we manage every aspect of the process. Whether you’re buying or selling assets, our expert approach ensures substantial tax savings tailored to your situation.
Expert Guidance from Qualified Accountants
Our team, accredited by the ATT and ICAEW, delivers professional advice on CGT matters. With extensive experience, we help clients navigate the complexities of CGT, offering strategies for optimal tax relief, disposal planning, and minimising HMRC fees for high-value assets like property and shares.
Residential & Commercial Assets
Residential properties often face CGT, with exemptions available for private residences. However, complexities arise when properties are rented out as Furnished Holiday Lets or used as buy-to-let investments. At Accountants 4 U, we provide expert advice on property-related CGT, helping you navigate intricate rules and regulations.
Letting Relief: Eligible landlords may reduce their CGT liability by up to £40,000 in specific scenarios.
Private Residence Relief: Exempts periods when you live in the property from CGT liability.
We’ve assisted countless landlords and investors in calculating accurate CGT liabilities and planning strategically for their property investments.
Investments in Stocks & Shares
Capital Gains Tax on shares involves unique rules and calculations, particularly when dealing with shares bought and sold at different times and prices. At Accountants 4 U, we specialise in resolving these complexities, ensuring accurate calculations of your gains and offering expert guidance throughout your investment journey.
Share Matching Rules
The Share Matching Rule applies to individuals (not companies) and governs how share disposals are calculated:
- Shares acquired on the same day as the disposal are automatically grouped together.
- Shares purchased within the next 30 days are included in the calculation.
- Remaining shares are matched and consolidated into Section 104 pools for CGT purposes.
We also address additional complications such as bonus issues, rights issues, free issues, and business takeovers, providing precise solutions to your share-related CGT queries.
Chargeable Assets
Discover how some chattels, antiques, and collectibles may escape CGT liability. ‘Wasting assets’—items with a lifespan of fewer than 50 years, such as boats, vintage cars, and caravans—are generally exempt from CGT. Accountants 4 U will guide you through these exemptions, ensuring you take full advantage of applicable reliefs.
Tax Rates
CGT rates vary by asset type and your tax band:
Basic-rate taxpayers are charged 10%.
Higher-rate taxpayers face a 20% charge.
Significant gains can temporarily push you into a higher tax band, affecting your CGT liability. Accountants 4 U will help you navigate these rules and develop a tax strategy that aligns with your financial goals.
How Do Gifts or Inherited Assets Impact Taxes?
Gifts
Receiving gifts from family members, other than a spouse or civil partner, may trigger CGT implications. Careful valuation is essential when calculating CGT upon disposal of the gift. Contact Accountants 4 U for personalised advice on managing these situations effectively.
Inheritance
Inherited assets, such as property, become subject to CGT upon their sale. The CGT liability is calculated based on factors like the property’s inherited value, capital improvements, and associated expenses. Accountants 4 U specialises in guiding clients through the complexities of CGT on inherited assets, ensuring strategic management and minimising tax liability.
