How to plan ahead for your capital gains tax bill
That’s where BSR Bespoke chartered accountants in Tunbridge Wells come in. Our friendly team provides specialist CGT planning services that can help minimise the tax you pay on the sale of property, businesses and investments.
What is capital gains tax?
CGT is tax paid when you sell property, shares, personal possessions and business assets. The tax is paid on the profit when you sell (or ‘dispose of’) something (an ‘asset’) that’s increased in value. It’s the gain you make that’s taxed, not the amount of money you receive. Most chargeable gains are taxed at either 10% or 20% or a combination of both, depending on your total income.
Gains on residential properties (when you own more than one property) can be subject to an 8% surcharge and gains on UK residential property also need to be reported to HMRC with any CGT liability due 60 days after completion (60 day CGT Report).You only have to pay Capital Gains Tax on your overall gains above your tax-free allowance (called the Annual Exempt Amount or Annual Exemption).
Currently, the capital gains tax-free allowance is £12,300 (£6,150 for trusts). You may be able to reduce your tax bill by deducting losses or claiming reliefs. Certain reliefs can postpone your liability to CGT.
What CGT reliefs could I be entitled to?
- Annual exemption, as above.
- Business asset disposal relief (formerly Entrepreneur’s relief) and Investor’s relief (both of which reduce the CGT rate to 10%).
- Principal private residence relief.
- Lettings relief.
- Rollover relief for reinvestment.
- Holdover reliefs for gifts of business assets.
- Incorporation relief.
How can BSR Bespoke in Tunbridge Wells help with capital gains tax?
Our expert CGT planning and accountancy team can assist you by:
- identifying any available CGT reliefs and helping you claim them.
- advising on changing the ownership of assets to reduce the overall family tax burden.
- advising on how the timing of a disposal can affect your position.
- structuring a business sale tax efficiently.
- advising on the CGT efficiency of trusts and pension funds.
- advising on what to do if you make gains in the UK but are non-resident for tax purposes.
- guiding you through the disposal of an asset that you have inherited.
- advising you on an asset that is overseas.
- advising you on paying CGT on cryptoassets.
- assist you with reporting and paying CGT.