Capital Gains Tax
Capital Gains Tax is a tax on the profit when you sell or dispose of an asset that has increased in value.
The rules for Capital Gains Tax frequently change. Our expert advisers review your assets and plans to deliver essential tax planning, helping you maximise reliefs and minimise liabilities. We customise our advice to suit your unique circumstances, reducing your overall tax burden.
Understanding Capital Gains Tax: Rates, Exemptions, and Calculations
CGT typically applies to profits made from selling or disposing of assets that have increased in value during ownership. Chargeable assets commonly include shares, second homes, personal possessions worth over £6,000, and specific business assets. However, your primary residence is usually exempt unless you have used it for business purposes or other specific conditions apply.
Additionally, deductible costs may include those incurred when buying, selling, or holding the asset during ownership. Furthermore, the CGT rate varies based on your tax bracket and total taxable income for the tax year. Based on your circumstances, advisers carefully evaluate your situation and then provide tailored strategies to reduce, remove, or defer your potential tax liability wherever possible. Additionally, if you are married or in a registered civil partnership, thoroughly analysing both partners’ overall tax positions can often unlock further savings opportunities.
Capital Gains Tax Rates (from October 2024):
- Basic-rate payer on assets – 18%.
- Basic-rate payer on property – 24%.
- Higher or additional-rate payer on assets – 24%.
- Higher or additional-rate payer on property – 28%.
Reducing Your Tax Burden on Capital Gains Tax with Expert Advice for Individuals
Capital Gains Tax (CGT) has become a pressing issue for many taxpayers. As a result, anyone with gains exceeding £3,000 in 2025/26 (excluding your primary home and personal car) must declare them to HMRC. Furthermore, the annual exempt amount has been reduced from £12,300 in 2022/23 to £6,000 in 2023/24 and £3,000 in 2024/25. This significant reduction exposes thousands more taxpayers to CGT, meaning they will need to submit returns and potentially pay higher taxes.
These changes indicate that business owners and individuals must carefully consider the timing of selling capital assets. In fact, strategic planning can help maximise both personal and business gains while reducing exposure to tax.
In this ever-evolving tax landscape, consulting a Capital Gains Tax accountant is crucial for understanding your liability. They can identify potential reliefs and offer advice on structuring your affairs to protect your income effectively. Frequent CGT rule changes make planning essential to minimise tax and maximise reliefs.
There are specific scenarios where you can be exempt from CGT, such as gifting assets to charity, selling your main home or personal car, and holding assets in ISAs. Transfers to a spouse or civil partner are also exempt. Limited companies don’t pay CGT but report gains in their Corporation Tax return, taxed at the corporate rate.
We ensure your Capital Gains Tax is calculated accurately and reported on time, keeping you fully compliant with HMRC regulations. Accurate submissions help you avoid costly errors while meeting legal requirements provides confidence and peace of mind.
Comprehensive Capital Gains Tax Advice:
Our holistic approach to Capital Gains Tax (CGT) considers your finances, business strategy, and future goals. We focus on understanding your circumstances to maximise tax savings and identify reliefs. When filing is required, we handle the calculations and submit your CGT return to HMRC, ensuring accuracy and compliance.
ABS Accountancy ensures you maximise relief by using tax-efficient business structures and, if needed, reorganising your existing business. We will guide you through strategies, giving you confidence that you’re taking the correct steps now and in the future.
Financial planning presents challenges, so we tailor our tax services to guide you through key milestones like wealth building, business establishment, retirement, and wealth transfer.
We also help optimise your entitlements, including Principal Private Residence relief, Gift relief, annual exemptions, and capital losses.
Our specialists assist with:
- Tax-efficient business setup
- Remuneration and lifestyle funding
- Business governance and family succession
- Long-term investment strategies
- Business sale transactions
- Transitioning family wealth to the next generation
Why Hire an Professional Accountant for Your Tax Return?
Save Time and Reduce Stress
Engaging an accountant to handle your Capital Gains Tax return can save you considerable time and administrative effort. Moreover, ABS Accountancy provides far more than just filing services.
Ensure Compliance and Accuracy
We ensure your Capital Gains Tax returns are accurate, submitted on time, and fully compliant with HMRC regulations and legislation. This approach helps you avoid costly errors while giving you peace of mind.
Maximise Savings and Minimise Costs
Furthermore, we help you avoid costly penalties and ensure accurate calculation of expenses related to Capital Gains Tax, so you don’t overpay. We also actively identify opportunities to maximise available reliefs and savings.
Frequently Asked Questions
Capital Gains Tax applies to individuals, trustees, and personal representatives who sell or dispose of taxable assets. Companies are also liable for Corporation Tax on chargeable gains.
Assets subject to CGT include property (excluding your primary home), shares, business assets, and personal possessions worth over £6,000 (e.g., antiques). Some assets, like ISAs and certain government bonds, are exempt.
Minimising CGT by using available reliefs such as the annual tax-free allowance, spouse transfers, and entrepreneur relief. Planning and professional advice can also help optimise your tax position.
You must report and pay CGT on residential property sales within 60 days of completing the transaction. Declare CGT for other assets in your Self-Assessment tax return, due by 31 January after the tax year of the gain.
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Our team is here to provide personalised services, allowing you to focus on what truly matters, whether you’re an individual, sole trader, or owner-managed business.
