Capital Gains Tax (CGT)

Capital Gains Tax (CGT) is payable to HM Revenue & Customs (HMRC) when an individual, trust or company sells or transfers or gifts property (tangible or intangible) to another entity.

As with most taxes, there are numerous exemptions and reliefs available, most of which are complex and require specialist advice. Some assets are not liable to CGT, whereas others are only liable above a certain value. There is also an annual allowance, enabling individuals to make small gains on disposals each year, without paying any tax at all.

Why should you be interested in Capital Gains Tax?

If you own anything of value and decide to sell it, you potentially fall within the realms of CGT. If you do not inform HMRC of your disposal, you could also be liable to penalties where HMRC feels it appropriate.

The rate of CGT depends on your circumstances. In general terms, you pay tax at whatever your highest rate of tax is.

What can HW Chartered Accountants do for me?

Complicated and detailed calculations are required in order to finalise how much CGT is payable on the disposal of a particular asset. There are many reliefs and exemptions available, which can reduce or eliminate your tax bill, and should help ensure you pay the minimum amount of CGT.

Our nationwide coverage, with local offices ensures we have expert teams who can deal with such matters in a professional and detailed manner, and can ensure that you pay the least tax possible. In many cases it is vital to have expert advice, even before you sell or transfer an asset, as planning for CGT is the first step towards ensuring minimal tax liabilities.
For more information on CGT, and planning for it, contact your local office.