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Tax Advice

Advice on Capital Gains Tax

Unlock the expertise of our expert capital gains tax specialists.

Considering selling property, shares, or your business? We offer a comprehensive capital gains service, covering all aspects. We'll explore all available tax planning options to ensure you don't overpay.

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What is the Capital Gains Tax (CGT) in the UK?

Capital Gains Tax (CGT) is a tax you might pay on the profit you make when you sell something for more than you bought it for. This could include things like stocks, property, or even valuable collectibles. The amount you owe depends on several factors, but generally, you don't have to pay if the profit is below a certain amount.

RR accountants can provide valuable insights to ensure a clear understanding of CGT implications and optimise your financial decisions.

Our CGT Services

Complete service

Our Capital Gains Tax (CGT) offering goes beyond the basics. We handle the entire process, from strategically planning your asset disposal and exploring your options to filing your CGT return. Whether you're buying or selling assets, our unique approach ensures significant tax savings for you.

Qualified Accountants Guidance

Our team, accredited by the ATT and ICAEW, offers qualified advice on Capital Gains Tax (CGT). With extensive experience, we navigate CGT intricacies, ensuring optimal tax reliefs, strategic disposal planning, and minimal HMRC fees for high-value assets like property or shares.

Residential & Commercial Assets

Residential properties often encounter CGT, with exemptions for private residences, but nuances arise when rented as a Furnished Holiday Let. Meanwhile, buy-to-let properties generally incur CGT upon profitable sales. At RR Accountants, we guide you through the intricacies of property-related CGT scenarios, offering insightful solutions to navigate these tax landscapes effectively.

Letting Relief is a privilege accessible to landlords in specific scenarios, potentially diminishing Capital Gains Tax liability by as much as £40,000.

Private Residence Relief exempts you from Capital Gains Tax for the period you personally reside in the property.

At RR Accountants, we've guided numerous landlords and investors through precise Capital Gains Tax (CGT) calculations. But our tax planning service is more than numbers; it's about empowering you with choices.

Investment in Stocks & Shares

Capital Gains related to share disposal entail distinct regulations, distinguishing them from conventional calculations. Why? Because transactions involving buying and selling shares from the same company at varying prices and times can pose a challenge. At RR Accountants, we specialise in untangling complexities, ensuring a seamless understanding of which shares are sold and their purchase prices during the sale. Let's navigate your investment journey together with precision and expertise.

Share Matching Rule

The Share Matching Rule guides share sales for individuals, not companies, with three main principles:

1. Shares acquired on the same day are grouped together automatically.

2. Shares obtained within the next 30 days are part of the sale calculation.

3. Disposals are matched with all other share acquisitions, forming a consolidated asset in Section 104 pools for Capital Gains Tax purposes.

Additionally, complexities may arise in scenarios like bonus issues, rights issues, free issues, or business takeovers, each requiring unique considerations when calculating share gains, adding complexity to the process.

Chargeable assets

Uncover the world of chattels, antiques and collectibles, where gains on some are tax-free. Anything with a lifespan of 50 years or less, charmingly dubbed 'wasting assets,' gets a pass on Capital Gains Tax (CGT). This includes items like boats, vintage cars, and caravans cruising through this tax-free territory of fleeting assets.

Tax rates

The tax journey varies depending on the asset type. Your tax band plays a crucial role; a basic-rate taxpayer faces a 10% charge, while higher-rate taxpayers shoulder a 20% burden. It doesn't end there; significant gains might even bump you into a higher tax band temporarily. At RR Accountants, we decode these intricacies, ensuring your tax strategy aligns perfectly with your financial goals."

Need help with Capital Gains Tax

Speak to one of our Qualified Tax Advisor to see how we can help!

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UNDERSTANDING CAPITAL GAINS TAX RATES IN 2023/2024

Your tax obligation kicks in only for the net realised gain exceeding your Annual Exempt Amount, a tax-free allowance set at £12,300 for 2023/24. Here's a tip: Selling your main home typically doesn't incur Capital Gains tax, offering a strategic advantage. At RR Accountants, we stay ahead in the tax game, ensuring you optimise your gains within the regulatory landscape.

Type of Asset

Basic Rate

Higher Rate

10%

20%

Residential Property

18%

28%

Bitcoin Cryptocurrency

10%

20%

Other

10%

20%

How do gifts or inherited assets impact taxes?

Gifts

Accepting gifts from family members, except a spouse or civil partner, could result in Capital Gains Tax implications. This requires careful valuation and calculation of CGT upon disposal of the gift. Reach out to us for personalized guidance on handling this situation.

Inheritance

Inherited property becomes subject to CGT upon sale. To calculate CGT liability, factors like the property's inherited value, any subsequent capital costs, and your expenses are considered. At RR Accountants, we specialise in guiding you through the complex process of CGT calculation, ensuring your inherited assets are managed strategically.

RR Accountants Services

We provide a comprehensive range of accounting and tax services

ACCOUNTING

• Statutory accounts
• Management accounts
• Bookkeeping
• Business plan

TAX

• Tax investigation service
• Capital Gains Tax
• VAT
• Tax advisory

OTHERS

• Registered office address
• Management accounts
• Bookkeeping
• Business plan

Frequently asked questions about

Capital Gains Tax

What are the key differences in CGT for UK residents and non-residents when selling assets?

UK residents are taxed on the profits they make from selling most assets, anywhere in the world. This tax is called Capital Gains Tax (CGT).

Non-residents generally only pay CGT on profits from selling UK property and specific other UK assets.

Are there any exemptions or reliefs available for Capital Gains Tax?

Yes, there are various exemptions and reliefs available including the Annual Exempt Amount, Entrepreneurs' Relief, Private Residence Relief and the Annual Tax-Free Dividend Allowance.

Do I need to submit Capital Gains Tax to HMRC?

Yes, if you've made a taxable gain above the Annual Exempt Amount, you must report it to HMRC by filing a Capital Gains Tax return, even if you're not usually required to file a tax return.

Can losses be offset against gains to reduce Capital Gains Tax?

Yes, individuals can offset capital losses against capital gains to reduce their overall tax liability. Unused losses can also be carried forward to future tax years providing further opportunities for tax planning.

How can individuals avoid capital gains tax in the UK?

While it's not possible to entirely avoid CGT, individuals can mitigate liabilities by planning asset sales strategically, using tax-efficient investment vehicles, and seeking professional tax advice.

How can I minimize my Capital Gains Tax liability?

You can minimize your Capital Gains Tax liability by making use of exemptions, reliefs, and tax-efficient investment strategies. Seeking advice from a qualified tax advisor can help you explore your options and optimize your tax position.

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