Individuals are charged Capital Gains Tax (CGT) in respect of gains made from selling, transferring or otherwise disposing of assets. Before you go ahead with any transaction you should seek advice on how you may be able to reduce tax liability.
What assets are subject to Capital Gains Tax?
There are many common assets that can be subject to Capital Gains Tax (CGT) when they are disposed of, such as stocks, bonds, and precious metals. An asset is not always something tangible you can see and touch or that you own fully. It could be an intangible asset, e.g. goodwill in a company or an option over assets. It can also be something you have an interest in, for example, a leasehold interest in land.
What is the rate of Capital Gains Tax and how can I reduce my liability?
The rate of Capital Gains Tax is currently 33%, so approximately one third of your gain will be paid in tax.
Our aim is to research whether your disposal could potentially qualify for some form of Capital Gains Tax exemption, Capital Gains Tax relief or reduced rate of Capital Gains Tax.
Who do you give capital gains tax advice to?
You might want CGT advice if you are;
- Selling your business
- Structuring investments in new businesses
- Looking to offset your capital gains tax liability by the efficient use of old CGT losses
How can TaxAssist help with Capital Gains Tax (CGT)?
If you are considering selling a personal asset or all or part of your business, we can advise you of the tax planning opportunities available to you before you make your disposal, in order to mitigate or reduce potential tax liabilities.
We have initial meetings to scope out your own specific circumstances and to gather information. We will be looking to see if some of following capital gains tax reliefs and ideas will help minimise your CGT liability:
- Does your transaction qualify for entrepreneur relief, reducing the Capital Gains Tax rate to 10%.
- Do you qualify for retirement relief, which could eliminate your capital gains tax liability.
- Are you in a position to use capital gains tax losses to reduce the capital gain on a profitable asset.
- If you cannot dispose of an asset to trigger a capital gains tax loss, can you still claim capital gains tax loss relief through the use of a negligible value claim?
The legislation for CGT is a very complex area. There are many reliefs and exemptions which may lead to significant tax savings. It is therefore recommended that you seek detailed, professional advice. We will be able to prepare your CGT computations, claim any reliefs that you may be entitled to and calculate any liability that may be due.
Ask us about your CGT
Whether you have questions or are ready to get started, get in touch with us today via our contact form or by calling 01 854 0664.
Our team of experienced, independent, and friendly advisers will work to understand your business to allow them to make appropriate recommendations. We know managing taxes yourself can be difficult and time consuming which is why it pays to seek tax advice from a professional tax advisor who has supported people and businesses in your position many times before.