Capital gains tax

Capital gains tax

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At APT Tax Accountants, we specialize in handling Capital Gains Tax (CGT) matters for both businesses and individuals. With our extensive knowledge and experience in CGT, we assist our clients in understanding various aspects, including which assets are subject to tax, available reliefs, accurate reporting of CGT issues, and potential impacts of CGT.

Our dedicated team of Capital Gains Tax accountants works closely with you to ensure effective management of asset disposals, whether they involve properties, business assets, shares, or private assets. We aim to minimize your tax liabilities by providing expert guidance and advice throughout the process. With our clear and open communication, we make complex CGT rules easily understandable, and our accessibility ensures that we are always available to address your accounting needs.

Which assets are chargeable: Capital Gains Tax (CGT) is typically applicable to the disposal of various assets, including but not limited to:
Property (excluding the main residence in certain cases)
Business assets
Shares and securities
Personal assets like artwork, jewelry, etc.

It’s important to determine which specific assets fall within the scope of CGT to ensure compliance with tax regulations.

Which reliefs can be claimed: There are several reliefs available that can help reduce the amount of Capital Gains Tax payable. Some common reliefs include:
Entrepreneur’s Relief: Provides a reduced rate of CGT for qualifying business owners or individuals selling shares in a qualifying company.
Gift Holdover Relief: Allows for deferral of CGT when assets are gifted rather than sold.
Annual Exemption: Every individual has an annual tax-free allowance for capital gains, which can be utilized to reduce CGT liabilities.

Identifying and claiming the applicable reliefs can help minimize the impact of CGT on your overall tax liability.

How to report CGT issues accurately and on time: Reporting CGT issues involves completing the necessary tax return forms and providing accurate and detailed information about the assets sold and the relevant financial transactions. Key steps include:
Calculating the gain or loss on each disposal
Including all relevant documentation and supporting evidence
Filing the tax return within the prescribed deadline (usually by 31 January following the tax year of the disposal)

Accurate reporting and timely submission of CGT information is crucial to ensure compliance with HMRC regulations.

All other possible impacts of CGT: Capital Gains Tax can have various implications, including:
Potential impact on your overall tax position and liability
Considerations for tax planning strategies, such as timing of disposals and utilization of reliefs
Influence on investment decisions, particularly when assessing the tax consequences of selling assets
Potential implications for estate planning, inheritance, and succession planning

Understanding the broader impacts of CGT allows for informed decision-making and proactive management of your financial affairs.

At APT Tax Accountants, we provide comprehensive support in these areas, guiding you through the complexities of CGT and ensuring accurate reporting, compliance, and effective tax planning.

What Assets Are Chargeable To Capital Gains Tax?

The disposal of an asset could be subject to Capital Gains Tax, unless that asset is considered exempt. Common chargeable assets include:

  • Your main residence, unless fully covered by private residence relief
    (e.g. some larger properties or if you haven’t lived in the property for the whole period of ownership)
  • Commercial property
  • Rental property
  • Shares (excluding those held in ISA or PEP)
  • Business assets
  • Personal property worth over £6,000 (excluding your car)
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Understanding Capital Gains Tax

These are a few key things you should know about Capital Gains Tax:

You may be required to register for self-assessment (if not already registered) and report the gain on your tax return.

For residential property disposed of on or after 6 April 2020, gains must now be reported online and the tax paid within 30 days of completion.

To report the gain online, a government gateway account will be required (unless using an agent).

If you already complete a self assessment tax return, the gain should also be reported on your return.

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