Capital gains tax (CGT) is payable in more cases than you might think. If you’re disposing of assets, whether it’s a single item or a multi-million-pound business, it’s likely you’ll need to pay. Our advisers can help you take advantage of reliefs that are available, allowing you to hold onto more of your financial gains.
Generally, if you’re transferring chargeable assets as an individual or trustee, you’ll be subject to CGT – unless a specific exemption applies, or a relief can be claimed. CGT can also apply in unexpected situations, like gifting assets to your children.
While many people are aware that selling their home won’t typically incur CGT, most don’t understand why. If you’re selling your main private residence, there is a specific relief, meaning that not all property sales are exempt from CGT.
Working with our tax experts will help you understand which forms of relief apply to your disposal of assets. For example, if you’re reinvesting your profits into an approved investment, like the Enterprise Investment Scheme (EIS) or the Seed Enterprise Investment Scheme (SEIS), you could claim tax relief.
Another valuable relief, with a maximum lifetime tax saving of £100k, is Business Asset Disposal Relief (BADR). This can be claimed on the disposal of a qualifying business, shares in a qualifying company or qualifying business assets. There is also investors’ relief; the qualifying conditions are different from BADR, but it reduces the rate of tax and offers a more generous lifetime allowance.
Before selling or gifting anything of significant value, speak to one of our experts about your CGT liabilities. We’ll make sure you’re aware of all tax implications and help you create a more tax-efficient plan.
We’ll complete the necessary disclosures to HMRC on your tax return as part of our annual compliance service. Our knowledgeable advisers can also examine CGT in conjunction with inheritance tax planning, looking at the overall picture and plans for your wealth.
Get in touch with us to discuss how we can help you minimise your CGT liability.