Capital Gains Tax (CGT) is a very broad tax and can apply to the disposals of property, businesses, shares and personal possessions. CGT can also cover gifts, transfers, and even assets exchanges.
CGT is complex tax, but there are many reliefs and exemptions which can help reduce or even nil your liability. We can talk you through these in plain English, prepare computations and calculate any tax that may be payable.
Shires can work with you right from the beginning, advising on the structure and timing of the disposal, through to agreeing and reporting the disposal to HMRC.
We offer a free no obligation meeting and would welcome the opportunity to discuss any requirements you may have. Call us on 01270 820 273 or click to Get in touch.
There are two different rates of CGT – one for property and one for other assets. How much you pay will depend on the asset you’ve made a profit on and your income tax band.
2019-20 Basic-rate tax payer on assets (excluding property) 10%
2019-20 Basic-rate tax payer on property 18%
2019-20 Higher or additional-rate tax payer on assets 20%
2019-20 Higher or additional-rate tax payer on property 28%
Couple’s allowance (married or in a civil partnership only) £24,000
30-day payment window from April 2020
From 6 April 2020, anyone who makes a taxable capital gain from UK residential property will have to pay the tax owed within 30 days of the completion of the sale or disposal. This must be done by submitting a ‘residential property return’ and making a payment on account. This significantly cuts down the time you have to calculate and report your CGT. The 30-day rule only applies to UK residential property sold on or after 6 April 2020, and only where CGT is chargeable.