Capital Gains Tax

Precision and strategy are paramount when addressing capital gains tax (CGT). Our services are tailored to ensure clients maximise allowances and comply with all HM Revenue & Customs (HMRC) regulations.

Our CGT strategies

Successful CGT management involves understanding the intersection of assets, allowances, and rates. With a focus on assets such as property, land, shares, and personal possessions, we devise custom strategies that aim to:

Utilise the annual CGT allowance to minimise taxable gains.

Apply for reliefs like Private Residence Relief, particularly important for a property including second homes.

Recommend the timing of disposals to spread gains across multiple tax years for basic-rate taxpayers.

For business assets, we incorporate reliefs like Business Asset Disposal Relief (formerly Entrepreneurs Relief), where clients may pay a reduced tax rate of 10% on qualifying assets. We also advise charities and individuals on capturing gains within the tax-free allowance, ensuring clients take full advantage of the capital gains allowance to mitigate taxable capital gain.

Accurate record-keeping is the foundation of effective CGT management. Our services here involve:

Maintaining detailed records of acquisition and disposal of assets, segmented into separate pools for precision.

Tracking any capital losses which can offset future gains, in compliance with HMRC requirements.

Documenting improvements to the property that affect the base cost, and thus the gain, upon sale.

Comprehensive records are not just a compliance matter; they enable strategic decisions regarding disposals and crystallising gains. For higher-rate taxpayers, who face higher CGT rates, precision in record keeping can be key to optimising their taxable position.

Our services ensure that every client, whether dealing in residential property or diverse portfolios, approaches CGT with the confidence that every facet, from allowance to exempt assets, is considered and accounted for.

CGT often presents a significant challenge to individuals and businesses, with its intricate rules and potential implications on financial affairs. Our services aim to navigate these complexities, ensuring clients can secure their interests and manage liabilities effectively.

Engaging with us provides substantial advantages for managing Capital Gains Tax. Crucially, we are adept at interpreting the intricate regulations of CGT, simplifying the process of when and how to report gains effectively.

Strategising for tax relief: We devise strategies to fully use available tax relief, potentially reducing the taxable gain when an asset is sold. For example, when selling personal possessions such as jewellery, it’s essential to determine if these sales are beneath the threshold for CGT or if specific reliefs apply.

Calculating CGT: We skillfully calculate CGT, whether concerning the sale of investments, property beyond one’s residence, or even inheritance. We factor in the base cost and related expenses to determine the actual gain.

Tax rates and allowances: We apprise clients of the pertinent tax rates for their specific income bracket and highlight how to optimise their allowances to mitigate liabilities.

Advanced planning: By consulting us ahead of potential transactions, you can be advised on claiming reliefs, such as those applicable to gifts, or strategies to defer liabilities through financial products and investments.

Compliance with deadlines: In instances involving the sale of residential properties, we remind clients of the critical 60-day window for CGT payment, which helps them avoid late penalties and accrued interest.

We can play a pivotal role in simplifying the details related to CGT, thus affording peace of mind and potential financial benefits to their clients. We ensure not only the accurate calculation of CGT but also advise on the myriad ways to reduce the overall burden through judicious planning and utilisation of tax reliefs.