Capital gains tax (CGT) is the tax paid on an asset that has increased in value when it is sold.
The tax is paid purely on the profit on disposal of the asset, instead of the total amount received.
CGT is payable on many assets, from shares and bonds to businesses and properties. Although individuals are not exempt from paying CGT, there are exemptions when it comes to what incurs CGT.
If the asset is exempt from CGT or if the gain accumulated falls under your annual exemption (AE) – currently up to £12,300 for an individual or £6,150 for a trust – CGT needn’t be paid. Similarly, if an asset is gifted to a spouse or civil partner, or donated to charity, CGT does not apply. We can advise on what is exempt and what is not, as well as advising on various CGT reliefs that may be available, depending on the circumstances.
Although the capital gain may be below the annual exemption, there could still be reporting requirements in respect of which our team can advise.
There may be separate capital gains tax returns required in respect of certain property disposals for UK and non-UK resident individuals and trusts. The deadline for submission of such capital gains tax returns is 30 days from the date of completion of the disposal, with payment of any CGT liability due within the same 30-day period.
How we can help
Our multidisciplinary tax team can provide a bespoke service to help you negotiate the complexities governing capital gains tax, and will work with you to develop an effective strategy to minimise your tax liability.
We understand that protecting your wealth is a priority, which is why our dedicated advisers work with you to understand your personal circumstances, your objectives and your plans for the future, creating an effective personal tax-planning strategy. We advise on every aspect of your tax position, and can provide one-off specialist advice or ongoing services, depending on your specific needs.
If you would like to seek more advice regarding CGT, please get in touch with one of our dedicated tax experts today.