As a capital gains tax accountant with three decades of experience, we advise individuals and businesses on the best approach to manage their CGT liability. We’ll ensure you report everything correctly, apply for relevant tax reliefs, and avoid strict penalties from HMRC.
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In the UK, capital gains tax is charged on the profits made from selling assets, such as property, shares, cryptocurrencies, artwork, antiques, and more. You may find it useful to check HMRC’s guidance on the assets you pay CGT on.
In theory, this is quite simple. You sell an asset, you report the sale to HMRC, and pay tax on the profits.
However, if you don’t have much experience or knowledge of capital gains tax, you can easily end up paying more than you should. In addition to an annual allowance, there are a range of reliefs available, from private residence relief to business asset disposal relief, that can dramatically reduce your tax liability.
Plus, if you report your capital gains incorrectly or don’t report them at all, you could end up with a serious fine from HMRC.
Our capital gains tax advisors can help. We work with clients across the UK, and even abroad, on a range of matters, including:
In short, we cover everything. With our help, you’ll spend less time worrying about whether or not you’ve reported your gains correctly, and more time enjoying the profits from your disposal.
Whatever your gain - big or small, complex or simple - you can trust us to figure out the best approach, using nearly 30 years of experience.
As an independent, family-owned firm, we build client relationships often lasting many years by offering a personal service that larger firms simply can’t match.
We're proud of our work and the kind feedback we receive from our clients. Check out our reviews and testimonials to see what makes us so well-placed to help you.
Understanding capital gains tax is tough. Book a consultation with our team to get free, no-obligation advice on your tax position and potential savings.
In the UK, the gains (or, more simply, profits) made when you dispose of an asset are subject to capital gains tax. A disposal usually means a sale, but it can also apply to transfers or gifts. Keep in mind, if you’re a UK resident, CGT applies to any asset – regardless of where it’s located in the world.
To calculate capital gains, you work out the difference between the original price of an asset (i.e. what you bought it for) and the new price (i.e. what you sold it for). If the difference is positive and you’ve made a profit, you may need to pay tax. The final bill will depend on the type of asset, your income tax band, and any applicable allowances, exemptions, or reliefs.
Currently, for the 2024-2025 tax year, the capital gains annual allowance is £3,000, having dropped from £6,000 in the previous year. This means you can make up to £3,000 in capital gains before tax is due.
There are several means of reducing your capital gain tax bills, many of which you may not be familiar with. In addition to using your tax-free allowance, you can potentially reduce your capital gains tax by gifting assets to your spouse, investing in tax-efficient vehicles like ISAs or pensions, and taking advantage of various reliefs. We can help you make the most of these opportunities.
Certain assets are exempt from CGT, including your main home (if it meets the conditions for Principal Private Residence Relief), ISAs, lottery or gambling winnings, and personal possessions worth less than £6,000, e.g. antiques, artwork and jewellery. Gifts to charity are also exempt from CGT.
Yes, if you make a loss when selling an asset, you can report it to HMRC and carry the loss forward. This can be used to offset capital gains tax in the future. Keep in mind that you need to report any losses within four years from the end of the tax year in which they occurred. So if you make a loss this year (2024-2025), you need to report it by 2029. If you need help calculating and offsetting losses, get in touch.
Yes, there is a relief specifically for business owners, known as Business Asset Disposal Relief. You may be more familiar with its former name, Entrepreneurs’ Relief. This relief allows business owners to pay a reduced CGT rate of 10% when selling qualifying business assets, such as shares in a company or the business itself.
CGT is not immediately applicable to inherited assets. Instead, inheritance tax may be due depending on the value of the estate. However, if you inherit an asset and later decide to sell it, you may then have to pay CGT.
If you’re a non-UK resident, the only concern in regard to capital gains tax is land and property. If you sell land or property in the UK, you need to report it within 60 days of completion and then settle your tax bill on any gains made. This could lead to being taxed twice if you’re also liable in your country of residence, but, fortunately, the UK has double taxation agreements in place with many countries to avoid such scenarios. Get in touch to find out if this applies to you.
Yes, you may be liable for capital gains tax on cryptocurrency profits. Let’s say you buy £10,000 worth of Bitcoin, which increases in value to £15,000. It depends on your individual circumstances and how you invested in crypto, but tax may be due on the £5,000 gain when you decide to sell.
You can gift assets to your spouse or civil partner without incurring CGT, as transfers between married couples or civil partners are exempt. However, gifting assets to others may trigger a capital gains tax liability, with the tax based on the market value of the asset at the time of the gift.
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