CGT is a tax that is charged on the profit from a sale of any qualifying assets that are non-inventory. They could be:
Whenever any of these are sold, they will become liable to CGT, and any gain (or profit) that is made might make you liable to pay CGT. The amount will vary with the type of asset involved, how long you had it for and the usage of that asset. Capital Gains Tax can be applied to businesses and to individuals but both are likely to be taxed at different levels. Tax bands and allowances will also be different.
We are very experienced and qualified Tax Advisors and have full regulation by the Association of Taxation Technicians (ATT) as well as the CAEW (The Institute of Chartered Accountants in England & Wales.
Capital Gains Tax has to be regarded as a very complex taxation area usually concerned to items of high value such as stocks and shares or bricks and mortar. Our experience of Capital Gains Tax is measured in decades and we have helped many clients to minimise their tax liability as well as taking advantage of any tax relief that might be available.
We will be with you every step of the way from when you plan the disposal, looking at what options you have as well as any tax relief you might be eligible for when you submit your Capital Gains Tax return. Proper planning and disposal can save you a lot of money. One of our specialist team will be with you through the whole process of completing the tax return.
There is no doubt that, in the UK residential property is one of the most common items to attract CGT and that will not normally apply to your primary residence it can become complicated if for any period of time your property had been rented out. Properties that are bought to let will almost always attract Capital Gains Tax if a profit is made when the property is sold.
There will be some tax reliefs that are available like;
Over the years we have had many property investors and landlords as clients and we will extend beyond mere tax computation, you will find that a lot of potential for tax saving exists when your sale is planned properly. Our expertise will help you make an informed decision.
Disposal of Shares attracts Capital Gains Tax but special rules have to be applied compared to calculation of the standard capital gains. Because someone can buy as well as sell shares it might be tricky to identify which particular shares are being sold and what their purchase price is.
The Share Matching Rule is always applied to share sales where individuals are concerned. It doesn’t apply to a company.
These are the three matching rules:
Other complications can come up if there is an issue with rights, Bonuses, take over shares or free issues.
All need different treatment when it comes to share gain calculation
Not everything that is an asset will attract CGT e.g.:
'Wasting Chattels' refers to property that could be considered to have a life of no more than fifty years.
Unless, under the legislation any asset is specifically exempt, all assets will be liable for CGT. You will need to be up to date with the current HMRC requirements where chargeable assets are concerned.
Calculating gains and rates of tax will be different depending on what type of asset is concerned. The tax band you are in will also have an impact because a basic rate taxpayer, will have to pay 10%, and someone in a high tax bracket will have to pay 20%. You will also have to consider that the gain itself might be responsible for temporarily putting you in a higher tax band.
You will only need to pay tax on any gain or profit net realised that is over you tax free allowance which for the financial period of 2019/20 is £12k and £6k for a trust.
If the gift is from someone in the family such as your parents or grandparents but not from a civil partner or spouse might be subject to CGT. Capital Gain Tax calculation and valuation might be needed at the time of the gifting. Speak to us for guidance.
Property that comes to you through an inheritance will be subject to CGT when it is sold. CGT calculation has to be carried out at that time with property valuation when it was inherited and any costs that you have had to pay out since that time, after which CGT liability can be calculated.