Capital Gains Tax Accountant
Helping you navigate the complexity of Capital Gains Tax
What is Capital Gains Tax?
Capital Gains Tax is a tax levied on the disposal of an asset that has increased in value since its purchase. These assets are typically property, stocks, bonds, or even cryptocurrency.
Capital Gains Tax is calculated only on the gain from the disposal not the whole value of the asset.
The tax can also be triggered in various scenarios in addition to selling an asset. For example, you may be liable for Capital Gains Tax on the gifting of an asset, or selling one that has been gifted to you.
There are various exemptions and reliefs available to reduce your liability depending on the situation and individual circumstances. These can be quite difficult to navigate and are often best left to be calculated by a Capital Gains Tax accountant.
Landlords & Property Investors
Capital Gains Tax for Individuals
Individuals can also be liable for Capital Gains Tax in addition to businesses. A person may be subject to this on the sale of disposal of personal assets or buy-to-let properties.
For example, if you are a self-employed landlord, you may need to pay CGT on the sale of a property. This will also need to be detailed on your Self-Assessment Tax Return.
If you are reporting the sale of a rental property, this must be done within 30 days of completion to avoid any late filing penalties and interest.
The rate of CGT applicable is dependent on the taxable income you have received throughout the tax year. It is important to talk things through with a professional so you can ensure proper tax planning has been carried out to maximise your cash flow and reduce your liability where possible.
Capital Gains Tax for Businesses
As a business, it can be quite common to dispose of assets throughout the year depending on the line of work you’re in. Some businesses, for example, may need to dispose of fixtures and fittings or plant and machinery.
CGT will also be applicable if the company has made investments, just as an individual might. This can be any land and properties or any stocks and shares brought in the company name.
Without proper tax planning, you could be left with a substantial tax bill. It is crucial that you consult any disposals before they happen so that you can discuss claiming any reliefs and exemptions your business may be entitled to throughout the year.
Rates of Capital Gains Tax
Depending on your tax bracket, and the type of asset that is being disposed of, different rates of Capital Gains apply. You can see a breakdown of each individual asset and its corresponding bracket below:
Residential
Stocks & Shares
Cryptocurrency
Other Assets
Tax Allowance
Each year you have a Capital Gains Tax allowance that provides you with a set amount of free pay. You will only need to pay CGT on gains above this tax free allowance. The figure for this exemption typically changes each year so it is important to keep an eye on the figure announced by HMRC.
For the tax year of 2022/23 the Capital Gains Tax allowance is set at £12,300; or £6,150 for trusts.
Stocks & Shares
Unless your stocks and shares are subject to special circumstances, you may have to pay Capital Gains Tax when selling these shares.
Depending on your tax bracket, these may be subject to either 10% or 20%.
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Our years of experience and highly trained team of Capital Gains Tax accountants will ensure that you receive excellent services from us and all returns are taken care of in a highly effective manner. We will process your returns on time, every time and guarantee that your records are kept safe and in order on our secure system.
