Capital Gains Tax

Capital Gains Tax service

Capital Gains Tax (CGT) is typically incurred whenever a profit (or a gain) is made on the sale of all or part of an asset (or stocks and shares). This tax can impact both businesses and individuals, with the current rates of 28% on gains for the disposal of a residential property and 20% on all other taxable assets. When it comes to the impact on you or your business, therefore, you need to know precisely where you stand and how best to reduce the impact on your finances.

Capital assets subject to taxation can include stock, mutual funds, precious metals, property, art collections and so much more. In the scenario that there has been an appreciation in value during your ownership, you will be responsible for both reporting and paying CGT. For large organisations involved in frequent trading of assets, such activity can prove to be a real headache.

At JR Accounts, we have a team of CGT experts available to provide you with all the advice and support you require to ensure you comply with the latest CGT regulations. Our fully qualified team will handle all aspects through our CGT service, taking away the stresses and concerns so often arising from the situation.

Your business, CGT and JR Accounts

GGT can be hugely problematic for all kinds of businesses, which is why it’s essential to seek our expert advice. There are a number of ways we can help you handle Capital Gains Tax-related issues, including:

  • Offering advice on CGT (including the disposal of shares)
  • Offsetting losses
  • Offering advice concerning trusts
  • Offering advice to non-UK residents
  • Offering advice regarding overseas properties
  • Assisting investors who are looking to sell buy-to-let properties
  • Formulating tax-efficient ways of transferring properties to other family members
  • Offering advice on corporate restructuring
  • Notifying HMRC of liability (which we’ll help you to reduce)

The above list represents just some factors related to CGT; there’s plenty more we can assist you with and we’ll always be happy to provide a level of assistance that meets your demands.

Capital Gains Tax services in Ilford

 As you can probably tell, dealing with CGT isn’t exactly a walk in the park. But don’t worry; our accountants in Ilford has in-depth experience of handling CGT and managing its attendant issues. To learn more about how we can navigate you through this potential minefield, please get in touch with us at your earliest convenience.

CGT FAQs

Capital Gains Tax (CGT) is paid on the gain you make when items are sold. You only pay CGT, however, if the profit you make is over your annual tax free allowance, which is £12,300. You would need to pay CGT, for example, on any personal possession worth over £6,000, apart from a car, on property that isn’t your main home, or on business assets.

Since 2017, CGT has been charged at different rates according to the circumstances. A basic rate of 10% applies to assets excluding property, with a basic rate of 18% applying to property. Higher rates of 20% and 28% apply for higher or additional rate taxpayers.

CGT is usually paid on the gain of an item you’ve sold. To calculate it, you would subtract the amount you paid for the item from the current market value, and apply the relevant rate to find out how much you owe. Of course, you only need to pay CGT if your combined capital gains exceed your annual CGT allowance of £12,300.

If HMRC suspects that you owe CGT and have not paid it, they may initiate a compliance check. This is an enquiry into your tax affairs, which can prove costly and stressful, resulting in severe penalties for those who have deliberately not declared their tax liability. If you receive notification of a compliance check, it’s advisable to speak to a Capital Gains Tax accountant as soon as possible.

If you’re including CGT in your annual tax return, it is payable on 31 January along with all other taxes owing from your return. CGT on second homes should be declared within 60 days of the sale and any gain being made.

You don’t necessarily need an accountant to help you with CGT, but it’s a good idea to have one. This is because a reputable accountant can help you determine your Capital Gains Tax rate, calculate what is owed to HMRC, and help you legally reduce your tax liabilities.

Yes – any capital gains that exceed the annual CGT allowance of £12,300 must be declared to HMRC, either as part of your annual tax return, or in the case of second property, within 60 days of a sale and gains being made.
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