Capital Gains Tax Planning

What is Capital Gains Tax?

Capital Gains Tax (CGT) is payable on the profit when you sell or gift assets that have increased in value. If you have sold or are thinking of selling or gifting an asset such as land, property or investments, you may be liable to CGT.

We can help

We’ll calculate your current exposure to this tax and then maximise the available reliefs and allowances. We’ll then discuss the options for reducing or delaying your CGT payment.

Usually there are options available when considering how to structure agreements involving the disposal of capital assets. If you speak to us in advance of the transaction, then planning opportunities can be identified to reduce the tax payable and increase the retained proceeds.

Frequently asked Questions

The proceeds or market value less the original cost or market value when required plus the cost of any additions or improvements.

Not necessarily. If there is no capital gains tax payable and the proceeds are below the reporting limit then there is no requirement to put on your tax return.

Providing the detailed criteria are met, a claim for entrepreneurs relief for business assets will reduce the tax payable to 10%.

Certain gifts are eligible for holdover relief which will reduce any capital gains tax payable.

You may be able to claim private residence relief if the contract is structured correctly.

There may be financial products available but you may also need to take advice from a financial adviser.

If the annual exemption isn’t used then unfortunately it can’t be carried forward.

Inter spouse transfers are capital gains tax free and a useful planning tool.

Capital gains are charged at 18% and/or 28% (unless eligible to entrepreneurs relief) dependent upon your taxable income for the year.

If you have more than one property which you occupy, it may be worth submitting on election to share nominate which property qualifies for private resident relief.

Where sales proceeds are reinvested in further business assets, it may be possible to postpone some or all of the tax payable.

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Want to see what options are available to manage your CGT liabilities?