Capital Gains Tax
Capital Gains Tax (CGT) is a complex part of the UK taxation system. It is a tax on profit made from an individual or business selling an asset. What assets are included in this tax, potential relief available and reporting such profits are all important aspects of this process and this is where the experts at Accountants Glasgow come in.
Our expert dedicated team of Capital Gains Tax people will spend the time necessary to understand your assets, and potential profits and help ensure you dispose of those assets in a way that mitigates tax liabilities.
What assets are included?
Whilst some assets may be classed as exempt, there are some very comment assets that fall under the rules of CGT. Some of them include:
- A primary residence
- A commercial property
- Any rental property that you own
- Any business assets
- Any shares you hold
- Any personal property you own that is worth more than £6,000
As highlighted above, there are exemptions, such as your own car so it is always best to speak to an expert accountant to understand your exact liabilities.
What should I know about Capital Gains Tax?
We’ve put together some helpful advice about this particular tax, based on the fundamental questions our tax accountants get asked by customers across the UK.
Firstly, you should be aware of the concept that when you sell some kind of asset and it has increased in value since purchase, this means you’re making a profit on that asset. This is what is known as a ‘capital gain’.
Each person has a tax-free allowance each year and if your capital gains fall below this amount then you do not need to pay CGT. Sadly, the rules are complex and often confusing, so accurately calculating your CGT commitment is difficult without the support of tax experts like us at Accountants Glasgow.
Secondly, there is a range of tax relief solutions available on certain assets and these help lower the potential amount you pay. For example, CGT on a property is very common but there are actually approaches that enable landlords to reduce the tax burden.
Next steps
If you have an accountancy background or feel confident in dealing with CGT, then you may not require our services. However, we recommend all of those who have to deal with CGT to get in touch and speak to one of our accountancy experts. We can guide you through the process from start to finish and help ensure you get the most effective and efficient results.