When conducting the disposal of an asset, i.e. selling it, giving transferring it to another, swapping or trading it for something different, or receiving compensation for it (if it has been lost, damaged, or destroyed), capital gains tax (CGT) is a feature of UK tax legislation that must be adhered to.
That being said, the payment of CGT isn’t always necessary as some assets are free of tax; this, of course, depends upon whether your gains (or profits) for the year fall under your tax-free allowance (TFA) threshold.
As of the 2020/2021 tax year, tax-free allowance is registered as £12,300, and if your gains are lower than that, you may be tax-exempt.
Here at Lumbview Accounts, we pride ourselves on providing friendly, client-first CGT accountancy services. If you need to move an asset on, here at Lumbview, we can help make the transfer seamless.
What are taxable capital gains?
To put it simply, this is the tax on the gains (or profit) you make from the sale, transference, trade, or compensation of an asset.
For example, if you purchased a UK residential property for £300,000 and later sold it for £350,000, the capital gains derived are £50,000. As such, £50,000 is the taxable sum of money as the overall profit exceeds the TFA.
All things considered, CGT can be a complex issue, and to ensure you pay the correct amount of tax on an asset, it can be beneficial to acquire the services of a chartered accountant.
Why Choose Our Capital Gains Tax Specialists?
At Lumbview Accounts, we specialize in providing premium, bespoke accountancy services that yield the most financially beneficial results for our clientele.
What’s more, we pride ourselves on our friendly, client-first ethos, so should you entrust the handling of your CGT processing to us, you can expect to receive an exceptional, hands-on service that is designed to optimize your tax planning and minimize your CGT for the tax year.
How We Can Help You Pay Capital Gains Tax Correctly
The UK taxation structure and, more specifically, the CGT structure is complex and varies greatly depending on the circumstances of a sale, seller, and asset.
As a result, should you acquire our services, our dedicated team will help you navigate the complexities of CGT and pay it correctly and promptly via means of a seamless, premium, and personable service.
Our accountants will work closely with you to understand your business, asset(s), and the nature of their movement (sale, trade, gift, compensation) while also identifying, with precision, your asset’s market value.
Once this information has been successfully collected, it will enable your accountancy team to work towards optimizing your CGT returns via means of exemptions and reliefs.
Moreover, it’s beneficial to discuss your long-term plans with the Lumbview accountancy team so that, together, you may structure your remaining assets in such a way that you keep your taxable capital gain to a minimum when you do move your next capital asset(s) on.
Capital Gains Services To Easily Manage Your Capital Gains Tax Bill
The Lumbview Accounts team boasts collective decades of experience working within the UK’s financial markets and, more pertinently, within capital gains taxes.
Combined with the application of industry-leading accountancy software and up-to-date knowledge of current CGT legislation, our services are constantly refined and re-tailored to provide the most beneficial results for our clients.
As a result, management of your capital assets will be delivered concisely and simply to optimize both your experience and the overall gains you achieve.
With us, managing your capital gains tax bill couldn’t be easier.
Get a Better Understanding of Your Capital Gains Liability
If you’d like to find out more about capital gains taxes, how they affect the sale or transference of your business assets, or indeed how Lumbview Accounts can help you minimize an asset’s CGT, don’t hesitate to get in touch.
You can contact our expert accountancy team via telephone, Monday to Friday, 8 pm – 6 pm on 0161 793 9737, or visit us on social media:
If you’d prefer to send a written message to document the conversation in your records, you can fill in this simple contact form, and our team will return your message as quickly as possible.Get in touch
Frequently asked questions
Capital Gains FAQs
What is capital gain?
As referenced briefly in our introduction, gained capital is the sum of money received on top of an asset’s original price at the time of resale, trade, transference, or claiming compensation.
Put more plainly; it is the profit made from an asset.
For example, if you were to purchase a painting for £5000 and then resell it for £15,000, the capital gains arising from the resale would be £10,000.
Do I have to pay capital gains on inherited assets?
Yes. For example, if you later sell shares or a property you have inherited, you will be required to pay tax on the capital gains realized from that sale.
However, this, of course, only applies if the total capital gains exceed the tax-free allowance, and you do not pay CGT at the initial point of inheritance.
Will capital gains affect my taxable income?
Yes, while short term capital gain and long term capital gain income don’t affect the tax bracket that you fall within, it still contributes to your adjusted gross income (AGI).
This is important because your taxable gain can influence the receipt of benefits, retirement plan contributions and other sources of income.
What rate is individual capital gains tax charged at?
As of the 2020/2021 tax year, individual rates fall between 10 and 20%, excluding residential property and carried interest.
Individual rates, including residential property and carried interest, fall between 18% and 28%.
However, it’s worth noting that, as with all tax rates, CGT rates fluctuate year-on-year. Thus, to keep abreast of the latest changes and ensure you’re paying tax correctly, it’s a good idea to acquire the services of a professional accountancy firm.