Capital Gains Tax
Capital gains tax (CGT) is a tax on the profit you make when you sell something – the ‘disposal of a chargeable asset’ to use the technical language.
Tax Services
Capital Gains Tax – What is it?
Capital gains tax is often referred to as a ‘voluntary tax’ (as is inheritance tax), because with effective planning it can be avoided, reduced or delayed. Simply put, it’s a tax applied to the profit that is made when an individual disposes of an asset that has increased in value.
Abacus provides expert Capital Gains Tax advice helping individuals and businesses reduce their tax liabilities on property, shares and other assets through tailored guidance and strategic planning.
Who Pays Capital Gains Tax?
Note that the tax correlates to the ‘capital gains’ that are made – not the amount of money that is received. Whether a disposal is liable for taxation depends on if the asset has increased in value. Individuals who may incur capital gains tax include those with property or shares in a company.
With an expert capital gains tax advisor and effective planning, however, it is possible to minimise capital gains tax liabilities.
How Abacus can help you.
With careful planning and advice on capital gains tax and property – ensuring that capital assets are disposed of in such a way as to utilise annual personal CGT allowance to its fullest, for instance – individuals can reduce, delay or even avoid capital gains tax payments.
Our experienced team of accountants and capital gains tax advisors in Birmingham will work closely with you to provide capital gains tax advice and take advantage of all available reliefs and plan for any future liabilities.
There are several approaches we can take, depending on how your affairs are structured – but broadly speaking, our specialism includes:
Our Capital Gains Tax Services
- Making full use of valid tax deductions (such as ‘banked’ indexation allowance and professional fees).
- Making full use of all relevant reliefs (such as entrepreneurs’ relief, principal private residence relief, hold-over relief, rollover relief) and ensuring that you have the best chance of qualifying. The various reliefs available are attractive, but without expert advice, mistakes are easily made and these could affect your eligibility.
- Planning for both domiciled and non-domiciled residents, to ensure that any movements do not result in unexpected UK capital gains tax.
- Reviewing whether trusts or pension funds could be useful in capital gains tax Reviewing whether previous losses could be used to reduce a CGT bill (capital loss relief).
- Advising on industry-specific reliefs and regulations (such as the new CGT rules for non-resident landlords).
- Advising on wills; a sensitive topic, but – in certain cases – a useful planning device.
- Advising on ownership of assets in order to maximise reliefs within a family or between husband and wife; guidance regarding the transfer of assets in instances of divorce.
