Selling a property, shares or your business? you may be liable to pay capital gains tax on any gains made from your sale. At Tax Surgeons, we provide a complete and fully rounded capital gains service. Our team discuss all tax planning options available, so you don’t pay more tax than you need to.
What is Capital Gains Tax (CGT)
Capital Gains Tax is a tax on the profit made when you sell (or 'dispose of') an asset that has increased in value. This tax is applicable to a wide range of assets, including property, shares and business assets. If you make any gains, you may be liable to pay taxes. The amount of tax chargeable will differ depending on the type of asset, how long it was held, how the asset was utilised etc.
What you pay CGT on
Capital Gains Tax is due to be paid on the gain when you sell (or ‘dispose of’) a ‘chargeable asset’, these include:
most personal possessions worth £6,000 or more, apart from your car
your main home if you’ve let it out, used it for business or it’s very large
shares that are not in an ISA or PEP
business assets (including land and buildings, fixtures and fittings, machinery or shares.)
Capital Gains Tax
Tax Surgeons Capital Gains Tax service
Navigating capital gains tax (CGT) can be complex, but with our expert service, we make the process seamless and efficient. Our CGT service encompasses everything from planning your disposal to filing your CGT return, ensuring that you maximise tax savings and minimise liabilities. No matter how complicated your tax return is, our expert tax adviser will guide you through it step-by-step.
Our CGT Service:
Comprehensive Planning: We assist you in planning your disposal of assets, considering all available options to optimise tax efficiency.
Expert Guidance: Our experienced tax advisers will guide you through every step of the CGT process, providing clarity and support to ensure compliance and maximise tax savings.
Personalised Assistance: No matter how complicated your tax return may be, our expert advisers will provide tailored assistance, alleviating any confusion or burden associated with CGT calculations.
Qualified Staff: Our team of tax advisers is highly qualified and regulated by ACCA, ensuring that you receive advice of the highest caliber.
Why Choose Tax Surgeons for your CGT?
Expertise: With years of experience in CGT, we have the knowledge and expertise to navigate this complex area of taxation effectively.
Tax Savings: We work diligently to identify all available tax reliefs and exemptions, ensuring that you make the most of any opportunities to minimise your tax liability.
Peace of Mind: Leave the complexities of CGT to us. With our guidance and support, you can rest assured that your tax affairs are in capable hands.
Don't let CGT complexities weigh you down. Partner with us to receive comprehensive CGT services tailored to your needs. Contact us today to learn more.
Need expert help with a Capital Gains Tax issue?
Speak to one of our qualified accountants to see how we can help you.
How to calculate your capital gains/losses
Calculating capital gains tax (CGT) involves several key steps:
Determining Disposal Proceeds: Calculate the amount received from selling the asset.
Identifying Acquisition Cost: Determine the original purchase price and any associated costs.
Calculating Capital Gain: Subtract the acquisition cost from the disposal proceeds to find the profit.
Applying Allowable Deductions: Reduce the capital gain with allowable expenses like selling costs or enhancements.
Determining Taxable Gain: The remaining amount after deductions is the taxable gain subject to CGT.
Calculating Tax: Use the applicable CGT rate to find the tax owed on the taxable gain.
Considering Exemptions and Reliefs: Explore options where exemptions or reliefs may help to minimise CGT liability.
Staying Informed: Stay updated on tax laws to ensure compliance with current regulations.
Contact Tax Surgeons to get professional help and assistance so you can effectively calculate CGT and manage your tax liabilities.
FAQs - CGT on gifted property
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If you gift someone a property, you will usually have to pay Capital Gains Tax (CGT) if it increased in value since you bought it. It’s as if you sold the property for a profit, then took that money and gave it to them as a gift instead.
You don’t need to pay CGT if:
1) You’ve lived there the entire time (it was your home)
Or
2) you give it to your spouse
Or
3) you put it into a trust for the benefit of your child. In this situation, it will be deferred until your child sells the property
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For the 2024/2025 tax year the Capital Gains Tax rates for property are:
18% for your entire Capital Gains profit from property if your overall annual income is below £50,270
24% for your entire Capital Gains profit from property if your overall annual income is above the £50,270 threshold
You also have a £3,000 Capital Gains tax allowance. This means that:
Your Capital Gains up to £3,000 are tax free, so if you made less than £3,000 in profit you don’t need to pay any tax.
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If you’re selling it to a “connected person” (children, parents, siblings, etc.), HMRC will still ask you to pay CGT as if the property was being paid for at market value. All CGT calculations will use the market value of the property instead of the lower price that may have been used.
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Yes, you could also be liable for stamp duty, inheritance tax, and sometimes rental income tax.
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Until April 2020 you could either:
a) File a Self Assessment tax return, or b) Use HMRC’s Real Time Capital Gains Tax Service.
However, starting from April 2020, all UK tax residents who gifted property and were liable for CGT have to use only the Real Time Capital Gains Tax Service.
This means you get a payment reference number instead of a UTR , you won’t have to file a Self Assessment every year.
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You must report and pay any Capital Gains Tax due on UK residential property within:
60 days of selling the property if the completion date was on or after 27 October 2021
30 days of selling the property if the completion date was between 6 April 2020 and 26 October 2021
You may have to pay interest and a penalty if you do not report and pay on time.
Get in touch
Please get in touch to tell us a bit more about you and the tax issue you are facing, or if you would like to learn more about the range of services we offer.
Please enter your details below and we will get in touch at a time that suits you. Alternatively, call us on 020 8914 7868 or email us at info@taxsurgeons.co.uk
