Capital Gains tax

Our Expertise in Capital Gains Tax

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Having handled capital gains tax affairs for numerous clients over 30+ years, our in-house tax specialists have accumulated extensive expertise managing all aspects of CGT compliance and planning.

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We guide clients through calculating gains/losses on disposals then putting optimal reliefs and exemptions in place to legally minimise liabilities arising. Advice often centres around timing strategies, Annual Exempt Amounts, entrepreneurs relief, gift holdover relief, or loss utilization.

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Our hands on, jargon-free approach demystifies rules whilst ensuring accurate submissions and minimal undue payment on your behalf. Let us leverage our up-to-date CGT knowledge for your benefit.

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Comprehensive Capital Gains Tax Services

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Understanding Capital Gains Tax

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Capital Gains Tax (CGT) is a tax applied to the profit arising from the disposal of certain assets. It applies to individuals, trustees or personal representatives. Assets covered by CGT include shares, businesses and assets, investments, second homes and other properties.

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The gain arising is broadly the sale proceeds received less purchase cost and any enhancement expenditure. Each tax year you have an Annual Exempt Amount shielded from CGT. For 2023/24 this is £6,000. We calculate any gains in excess of this allowance and apply the appropriate CGT rate. This stands at 18% for basic rate taxpayers or 28% at higher rates.

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Understanding how CGT operates is essential to consider when making major asset sale decisions. Our expert team keep fully versed on the latest legislation, allowances and reliefs available so your tax position is optimised.

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Allowances and Reliefs in Capital Gains Tax

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As CGT specialists we advise clients on legitimately reducing tax due through claiming appropriate exemptions and reliefs. Key examples include:

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• Principal Private Residence Relief - No CGT applicable for selling main homes. We assist with nominating permitted area exclusions and periods of deemed occupancy. Also advise on letting periods that could impact eligibility.

• Entrepreneurs’ Relief - Reducing CGT rate to 10% on disposals for qualifying business owners with over 5% shareholding held for a continuous 12-month period.

• Gift Holdover Relief - Defers CGT owed by donor when gifting or selling asset below market value to a relative. Instead the recipient pays CGT when they sell. This prevents double taxation whilst keeping asset in family.

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Staying informed on allowable exemptions is key to mitigating unnecessary CGT expenses through our astute application on your behalf.

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Filing Requirements and Deadlines

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Another service area surrounds guiding clients through CGT administrative obligations from reporting disposals on self assessment tax returns to paying any sums due.

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Tax returns note total proceeds from quoted shares or property sales. We calculate any related allowable deductions plus highlight reliefs to claim and prepare accurate CGT computations. Supporting calculations must evidence figures reported.

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Once submitted, HMRC will calculate final liability and issue a tax demand. Depending on whether self assessment payments on account are made, the settlement date can fall anywhere from end of January to October following the disposal tax year. The exception to this rule will be any chargeable gains arising against any residential property, which will need to be filed and accounted for within 60 days.

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We take responsibility for compiling compliant CGT disclosures, utilising available reliefs then advising on tax bills arising so obligations are fulfilled in a timely manner.

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Interaction with Other Taxes

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In accounting for CGT correctly, we consider interactions with other applicable taxes depending on client situation and type of asset disposed. For property sales, advising on overlap with Inheritance Tax business asset exemption or stamp duty rules has cost saving implications.

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For quoted share disposals, understanding how amounts disclosed fit with income tax dividend taxations or company capital reductions also enables legitimate financial optimisation. We take an integrated view across your tax affairs.

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Strategies for Minimising Capital Gains Tax

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A core part of our CGT service encompasses legally minimising liabilities using appropriate mitigation strategies. Tactics we utilise rely on in-depth understanding of the latest tax rules and financial context to remain fully compliant.

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Common recommendations cover asset timing realisations before and after key allowance thresholds; prioritising encashment of lower gain assets to preserve annual exemptions; or payment staging disposal consideration over multiple years. Utilising losses on other assets to offset gains realised is another avenue we explore.

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We aim to ensure CGT efficiency through astute execution of disposal decision making in clients’ best interest.

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Personalised Tax Consultation and Planning

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No two clients’ financial situations are the same. So we offer tailored CGT guidance based on personal position. Consultations evaluate your goals, assets and tax outlook holistically to shape bespoke recommendations enabling tax efficient decisions.

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Whether preparing to gift, sell or bequeath properties and other assets, we explore legitimate avenues to potentially reduce future beneficiary CGT via advancing decisions or proving pre-owned asset time lengths. Helping mitigate tax owed over coming years through prudent specialist planning unique to your needs. Contact us today to discuss options.

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Why Choose Mitchell Associates for Capital Gains Tax

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Selling key assets like property investments or exiting a business tend to occur once in a lifetime. So capital gains tax planning matters require highly experienced guidance you can trust for compliant tax efficiency unique to the situation.

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Our independent advice commits to legally minimising your liabilities via timing strategies, allowances insights and documentation support. We become your tax partner for these major events to ensure accurate compliance obligations met, appropriate reliefs claimed and every avenue explored to reduce undue payment on the transactions involved on your behalf. Our 30 years expertise offers peace of mind.