Capital Gains Tax (CGT) is a tax on the profit when you sell, gift or transfer (‘dispose of’) something (an ‘asset’) that as increased in value. This could include investments, properties, or businesses. Sometimes you may incur a loss too. We offer in-depth advice and guidance on managing your capital gains tax liabilities while ensuring compliance with HMRC regulations.
Services We Offer
Calculation of Capital Gains
We assist in accurately calculating the capital gains you’ve made on your assets, factoring in all allowable costs and reliefs.
CGT Allowance Planning
We will guide you on effectively utilising your annual CGT allowance, which can reduce your taxable capital gains.
Asset Disposal Strategies
Our experts can advise you on strategic timing of asset disposal to manage and potentially minimise your CGT liability.
Tax Return Assistance
We will help you correctly report your capital gains on your self-assessment tax return, ensuring accuracy and compliance.
Property CGT
Our team offers comprehensive advice on managing the implications of Capital Gains Tax when selling, gifting or transferring an investment property. We provide comprehensive advice on CGT, including calculations, reporting, and payment. Moreover, we can guide you on claiming valorous reliefs and address potential complexities:
Benefits
Informed Decisions
We equip you with the necessary insights and knowledge, enabling you to make informed decisions about your capital assets.
Expert Knowledge
Our team’s deep understanding of CGT regulations and legislations ensures that you have the expertise to navigate the complexities of CGT.
Time Efficiency
We handle the intricate aspects of CGT on your behalf, allowing you to focus on your other responsibilities.
Strategic Planning
We assist in effective planning to potentially reduce your CGT liability, aligning your financial decisions with your long-term goals.
Key Aspects of CGT
Changes in the use of a property during the period of ownership can add complexity to Capital Gains Tax calculations. For instance, if a property initially bought as a primary residence is later turned into a rental property (or vice versa), or if a part of the property is used for business, it could impact the amount of tax due.
If a property has been the owner’s main residence at any point during ownership, Private Residence Relief may apply, reducing the Capital Gains Tax. Calculating this can be complex if the property hasn’t been the main residence for the entire period of ownership.
The way the property is owned can affect the Capital Gains Tax. For instance, if the property is owned jointly or in a partnership, or if it’s held in a company structure, the tax calculations and implications can be quite complex.
Previously, landlords could benefit from Lettings Relief on properties that were once their main residence. However, since April 2020, Lettings Relief is only available to landlords who share occupancy with their tenants, making the situation more complex for those who used to live in their rental property.
Different rules may apply for periods of absence, for instance, if the property was empty, or if the owner lived abroad, which could affect Private Residence Relief and the final Capital Gains Tax calculation.
Costs of improvements can be used to reduce the gain and thereby reduce the Capital Gains Tax. However, distinguishing between ‘repairs’ (which are a revenue expense deductible from rental income) and ‘improvements’ (which can be offset against Capital Gains Tax) can be complex.
Determining the actual ‘gain’ from the property sale can be complex. This needs to account for the original purchase price, associated purchase costs, improvement costs, and costs at the time of sale.
If a landlord makes a loss on the sale of one property, this can be offset against gains on other properties. The rules around this are complex and proper recording and reporting of losses are critical.
Why work with us?
At UK Tax Advice and Accountancy, we understand that managing capital gains tax can be complex and demanding. Our dedicated team provides tailored solutions, customised to your unique circumstances. Whether you’re considering selling a property, shares, or a business, our experts are here to ensure you navigate the CGT landscape confidently and proficiently.
We believe in personalised service, understanding each client’s unique circumstances, providing tailored solutions, timely service, and peace of mind. Navigate the Capital gain landscape with confidence.