Capital Gains Tax

If you’re selling an asset, you may need to pay capital gains tax on it. We can help you – learn more here and get in touch if you need guidance.

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What is Capital Gains Tax and do you need to pay it?

Capital Gains Tax (CGT) is a tax on any profits you make whenever you sell (dispose of) an asset that has become more valuable since you received it. Individuals are charged Capital Gains Tax in respect of gains made from selling, transferring or otherwise disposing of assets.

You will have to pay a percentage of tax on the actual gain itself, not the entire amount of profit.

If you are considering selling a personal asset or all or part of your business, we can advise you of the tax planning opportunities available to you before you make your disposal, in order to mitigate or reduce potential tax liabilities.

Do I have to pay Capital Gains Tax?

You may have to pay CGT on the following:

  • Business assets and shares
  • Shares that aren’t in an ISA or PEP
  • Personal possessions worth over £6,000 (not including cars)
  • Property you own besides your main home
  • Your main home, but only if it’s large, let out or used for business

You may still have to pay Capital Gains Tax even if these assets are a gift or transferred to someone else. Even if your asset is lost or destroyed, you may have to pay CGT on any insurance pay out you receive.

The good news is that there is a tax-free amount you can earn up to before becoming liable. If anything you sell or dispose of is under £12,000 in value, you will not be liable for Capital Gains Tax. This is known as an Annual Exempt Amount.

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How we can help

Unsure about whether you’re liable or how to work out how much you owe?

Getting help with Capital Gains Tax from a qualified accountant is always the safest option. We will be able to put your mind at ease and ensure that you’re doing everything accurately and legally.

With our service, we will:

  • Check whether you’re liable for Capital Gains Tax
  • Calculate how much Capital Gains Tax you owe
  • Help you report any gains through the real-time Capital Gains service or through your usual Self Assessment returns
  • Help you reduce your overall tax liability, so you’re not paying more than you need to.

Make sure you get help from a experienced accountant so you can rest easy. Get a quote from us or sign up today!

We’re here to help

Discuss your business and accountancy needs in detail with our friendly team with absolutely no obligation. Call our friendly team on 01925 670289 or request a callback using the “get a quote” button.

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