Capital Gains Tax
Managing Capital Gains Tax is an important part of personal and business tax planning. Whether you’re looking to sell property, shares, or other high-value assets, understanding your obligations and making the most of available reliefs can help you reduce tax liability and make informed financial decisions. With over 125 years of experience supporting clients across South Wales, our firm is here to help you manage Capital Gains Tax with confidence.
What is Capital Gains Tax?
Capital Gains Tax (CGT) is a tax on the profit made when you sell or dispose of an asset that has increased in value. CGT is only charged on the “gain” (the difference between the original purchase price and the sale price), rather than on the full amount received.
Common assets subject to Capital Gains Tax include:
- Property (such as second homes or buy-to-let properties)
- Stocks and shares not held in an ISA or pension
- Business assets, including goodwill and equipment
- Valuable personal items worth over £6,000 (e.g., art, jewellery, antiques)
- Certain assets, such as your primary residence or personal possessions sold for less than £6,000, may be exempt from CGT.
Our Capital Gains Tax services:
We calculate the capital gains on your assets and prepare accurate CGT returns to ensure compliance with HMRC. Our team handles all documentation and submission to make sure you’re covered.
Our specialists can help identify applicable reliefs and allowances, such as Private Residence Relief, Entrepreneurs’ Relief, and the annual CGT allowance. By carefully applying these, we can help reduce your tax liability.
The timing of asset disposals can impact your Capital Gains liability. We provide strategic advice on the optimal time to sell assets and, if possible, structure sales over multiple tax years to make full use of allowances and lower rates.
Supporting you with Capital Gains Tax considerations for inheritance and estate planning, advising on the best strategies to pass on assets while minimising tax impact on heirs.
Who Needs to Pay Capital Gains Tax?
You may need to pay CGT if you are:
- An individual who has sold or disposed of assets that have increased in value beyond your annual CGT allowance
- A landlord or property investor selling property other than your primary residence
- A business owner selling business assets or shares
- A trustee or personal representative managing an estate
The amount of tax you’ll owe depends on your tax rate and the type of asset sold. Working with a knowledgeable accountant can help ensure that you pay only the necessary amount, while taking advantage of all eligible exemptions and reliefs.
