Capital gains tax (CGT) is the tax paid on an asset that has increased in value when it is sold.
The tax is paid purely on the profit on disposal of the asset, instead of the total amount received.
CGT is payable on many assets, from shares and bonds to businesses and properties. Although individuals are not exempt from paying CGT, there are exemptions when it comes to what incurs CGT.
If the asset is exempt from CGT or if the gain accumulated falls under your annual exemption (AE) – currently up to £11,700 for an individual – CGT needn’t be paid. Similarly, if an asset is gifted to a spouse or civil partner, or donated to charity, CGT does not apply. We can advise on what is exempt and what is not, as well as advising on various CGT reliefs that may be available, depending on the circumstances.
If you’re liable to pay CGT, the rate of tax payable is dependent on the type of asset and the total amount of your taxable income.
How we can help
Our multidisciplinary tax team can provide a bespoke service to help you negotiate the complexities governing capital gains tax, and will work with you to develop an effective strategy to minimise your tax liability.
We understand that protecting your wealth is a priority, which is why our dedicated advisers work with you to understand your personal circumstances, your objectives and your plans for the future, creating an effective personal tax-planning strategy. We advise on every aspect of your tax position, and can provide one-off specialist advice or ongoing services, depending on your specific needs.
If you would like to seek more advice regarding CGT, please get in touch with one of our dedicated tax experts today.