Capital Gains & Inheritance Tax

The key to capital gains and inheritance tax accounting lies in knowing and understanding all the details. This allows you to put in place a plan to balance taxes and reliefs. 

Our team of highly experienced accountants have their fingers on the pulse of taxes and reliefs and are eager to help you make the most of your money by minimising your tax exposure and maximise your tax efficiency. Our expertise and experience will help you better manage your money in ways you can understand and safely implement.

What is Capital Gains Tax

Capital Gains Tax is the tax due on an asset when it is sold if it has increased in value. The gain you make is taxed, rather than the amount of money that you receive.

Some assets are tax free

Typical examples of when you will be subject to Capital Gains Tax is when you sell a property that is not your main residence or sell stock shares. Business are also subject to Capital Gains Tax.

 

There is also a tax-free exemption of £12,300. If your assets have appreciated significantly, then it is expected you'll exceed this allowance and will be exposed to Capital Gains Tax. To make things more complicated, the rate at which you pay CGT varies from 10% to 28%, depending on whether you're on a higher income tax band or if the gain is property related.

What you don't pay Capital Gains Tax on:
  • You're selling your main residential property

  • You're selling a car

  • Your possession is worth less than £6,000

  • You're gifting money to a spouse or civil partner or a charity

  • The gain is within your tax-free allowance