Capital Gains Tax: Is your transaction affected?

Selling property, land, shares, a piece of art or a vehicle. Does gifting avoid tax? It can get complicated which transactions are within the remit of capital gains tax.

What’s involved

Capital gains tax comes into effect when capital assets, shares, property or a business is sold. Certain items are specifically exempt from capital gains tax such as your personal motor vehicle, personal possessions such as paintings, jewellery up to £6,000 and stocks and shares in ISA’s.

Avery Clifton Reading Chartered Accountants

Benefits of tax planning: Take advantage of what’s on offer

Capital gains tax planning assists in considering whether claims and allowances can be availed and gives time to meet the conditions necessary to claim the relevant relief. It can be reduced in some cases to nil by undertaking transactions together in a particular tax year. Depending on a persons income, timing disposals around tax year before or after the tax year can result in gain being taxed at a different rate. In some cases, making a negligible claim loss can result in losses that can be set off against your gains.

How Avery Clifton can assist you

  • We will work with you to ascertain the facts of each case from a capital gains tax point of view. This involves a detailed review of the use of the asset during the it’s ownership.

  • We will then provide a preliminary tax estimate based on the facts you have provided.

  • We will also review other assets you are disposing in the near future and whether the timing of the disposal should be bought forward.

  • We then use our tax experience to ascertain which allowances, reliefs and exemptions can assist you to reduce your tax bill. We look at the availability of such relief’s to see whether the criteria is met.

  • For businesses, amongst other reliefs, we also look at taper relief to see whether we could reduce the rate of tax from 40% to 10%

  • For individuals, some of the reliefs are: entrepreneurs’ relief, reinvestment relief and principal private relief, for which the rules have changed.

  • We always advise you should plan and seek professional advice in advance of disposing an asset.

  • We can assist in planning how capital gains tax payments can be deferred, creating a cashflow advantage for you.

  • Planning before agreeing a sale is the best way forward to ensure you are eligible to all claims and reliefs that may be available to you.

Contact us on 0118 907 9224 to see how we can assist you

Our solutions for businesses and individuals

Our aim is to pro-actively work with you to reduce your tax bill legally, increase profitablity and increase the value of your business. Our motto is we work for you, as opposed to HMRC. We cater for all from situations where you require an outsourced finance director to where you require someone to provide ad hoc services.

Give us a call on 0118 907 9224

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