“Tax you pay on profit or gain realised when you dispose of (or ‘sell of’) an asset which has increased in value”
What is Capital Gains Tax (CGT)?
A tax levied on the profit made on sale of any non-inventory qualifying assets is called capital gains tax. Bonds, stocks, Property, real estate, and precious metals when sold are subjected to capital gains tax. If you make a Gain (i.e., a Profit), then you may be liable to pay taxes. The amount of tax chargeable will differ depending on type of asset sole, how long it was held, how the asset was utilised etc.
CGT is applicable to both individuals as well as businesses, however, the tax rates may well be different for both. Similarly, the tax allowance or tax bands may also differ for each.
Advice from Qualified Staff
We are qualified Tax Advisor and are regulated by the Association of Taxation Technicians (ATT) and the institute of Chartered Accountants in England & Wales (ICAEW).
We provide a complete CGT service from planning your disposal, determining your options, reliefs you may be eligible for to computing and submitting your CGT return. Significant amount of tax can be saved when the purchase or disposal of assets are planned properly.
Our specialist tax adviser will handle the entire tax return process, deal with HMRC on your behalf, and provide full support throughout the process until completion. You will never find yourself alone or burdened again.
After 25 years of running a business I have finally found the ideal accountants. They offer a great service integrated perfectly with the online software. They handle all my compliance efficiently and rapidly respond to my queries.
Residential & Commercial Properties
Residential Property is one of the most common forms of Capital Gains Tax paid in the UK. Although your Principle Private Residence is normally out scope for CGT, but things can become more complicated if for part of the period your property was rented.
Buy-to-let properties on the other are almost always subject to CGT where a profit was realised when the property was sold.
There are various tax reliefs available such as;
- Letting Relief
- This relief is only available to landlords in certain circumstances and can reduce your CGT liability by upto £40,000
- Private Residence Relief
- This is to provide relief for the period you have lived in the property yourself
etc which can be applied to reduce your CGT liability.
We have helped hundreds of landlords and property investors with their CGT calculation. Our Tax advisory service goes beyond just the tax computation, there is a lot of potential tax saving when planned properly. This is where our expertise comes in, we advise you with different options so you can make a informed decision.
Capital Gains Tax Rates for the tax year 2019/2020:
You only pay tax on any net realised gain/profit that over you Annual Exempt Amount (your tax-free allowance) which for 2019/20 is set at £12,000 (£6,000 for trusts).
- If you are a basic tax band rate payer, you will be levied capital tax gains at a rate of 10% for your entire capital gain. It will be 18% if the asset in question is a residential property.
- If you are high rate tax payer, then you will be subjected to a 20% capital gains tax rate. It will be 28% in case the asset in question is a residential property.
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