Capital Gains Tax (CGT)


CGT Services

CGT is sometimes regarded as a "voluntary tax" (as is inheritance tax) since it may be avoided, lowered, or postponed via careful tax planning. Simply described, it is a tax imposed on the profit realised when a person disposes of an appreciating asset.

Keep in mind that the tax is based on the "capital gains" earned, not the amount of money received. Whether an asset has appreciated in value determines whether a disposal is subject to taxes. People who own real estate or stock in a firm may be subject to capital gains tax.

However, it is feasible to reduce capital gains tax burdens with qualified guidance and strategic preparation.

When you sell or dispose of an asset for a profit, you are subject to the Capital Gains Tax. Property, shares, investment funds, jewellery, and artworks are examples of assets subject to CGT. The amount of CGT is determined by your unique situation. To learn more, dial 02071559545.

  1. Maximizing your usage of the Annual Exempt amount is one strategy for lowering your capital gains tax bill.
  2. using all permitted tax deductions, including those for professional fees and "banked" indexation allowance.
  3. Make the most of all applicable exemptions (such as the entrepreneurs' relief, the exemption for a primary home, the hold-over exemption, and the rollover exemption), and make sure you have the greatest chance of qualifying. Although the many reliefs offered are alluring, without professional guidance, errors are simple to make and might have an impact on your eligibility.
  4. examining the potential value of trusts or pension assets for capital gains tax
  5. examining if past losses may be used to lower a CGT charge (capital loss relief).
  6. Explain industry-specific reliefs and regulations (such as the new CGT rules for non-resident landlords).
  7. Will advice is a delicate issue, yet it may be a helpful planning tool.
  8. Advise on the transfer of assets in divorce proceedings; advice on asset ownership to maximise advantages within a family or between husband and wife.
  9. Both domiciliated and non-domiciliated people must plan ahead to avoid any changes unexpectedly triggering UK capital gains tax.
  1. It's important to schedule investments and sales using schemes like SEIS or EIS to maximise reliefs/exemptions (or spread these over more than one tax year). Capital gains deferral assistance may be offered, but the timing must be exact.
  2. Reinvesting funds and claiming EIS deferral relief, rollover relief, or holdover relief might postpone capital gains tax. Tax planning involves minimising capital gains tax payments.

Taxsteins Ltd's excellent tax advisors can help you. Our highly-qualified professionals will speak with HMRC and finish all documentation on your behalf, saving you time and money. For personal tax advice or a free consultation, call 02071559545 or email info@taxsteins.co.uk.