Capital gains tax (CGT) could be due when an individual sells an asset at a profit, though that’s not always the case. Gifts, transfers, and asset swaps can attract CGT, but, again, not always. Businesses pay corporation tax when they “dispose of” assets but individuals will pay CGT on personal gains. The specialist capital gains tax advice of an accredited accountant can help you to reduce your capital gains tax liability compliantly, whether you’re resident or non-UK resident.
Welcome to Daniel Wolfson, Capital Gains Tax accounting service
Daniel Wolfson’s team of tax specialists manage the accounts and tax affairs for hundreds of individuals (single, married, or civil partnerships), business partners, sole traders, limited companies, and many other types of organisations.
Our specialist CGT accountancy services provide expert capital gains tax advice relating to both business and personal gains. They can also calculate and file your tax return on your behalf, reporting any gains in personal ownership; that tax paid is exactly what is due.
No matter the circumstances (business or personal) or the asset (short-term, fixed, tangible, or intangible), our dedicated capital gains tax advisors aim to apply their expert tax advice to offset capital gains tax compliantly through tax relief and help you to avoid costly errors.
What is a capital gain?
A capital gain is the profit you make when you sell (“dispose of”) any asset that has increased in value since you acquired or purchased it. You only pay capital gains tax on the profit or gain and not the whole amount received from the sale of the asset.
The annual exemption for individuals is £3,000 for 2025/26 (unchanged from 2024/25), and for trusts £1,500. This allowance is a fixed amount, not dependent on income tax band or asset type; however, the CGT rates applied to gains above the allowance depend on your income tax band and asset type.
From 30 October 2024, CGT rates for residential property and other chargeable assets share the same rates: 18% for basic rate taxpayers and 24% for higher/additional rate taxpayers. Carried interest gains are taxed separately at 32% from 6 April 2025
Individuals pay CGT on personal gains above the annual exemption as outlined above, while companies continue to pay corporation tax on their chargeable gains.
How are capital gains taxed?
The application of capital gains tax varies depending on several factors. On property, for example: if it is your primary residence, your “private residence relief” will mean no CGT will be due. If you have second properties or inherited property that has appreciated in market value upon sale, you may have to pay CGT on the gain at 18% for basic-rate taxpayers or 24% for higher- or additional-rate taxpayers, regardless of whether the gain is from residential property or other assets.
The rules on UK residential property are the same for non-UK residents; they are also liable to pay UK tax on any gain and can normally claim their capital gains annual allowance in the same way as UK residents. For non-UK companies selling property in the UK the rules differ, but potentially applicable allowances can be applied here too.
For buy-to-let property purchased through UK limited companies, there are some applicable allowances to offset the gain, and enhancement expenditure (e.g., for conversions or refurbishment) may be allowable. Business Asset Disposal Relief (BADR, formerly Entrepreneurs’ Relief) and Investors’ Relief now offer a 14% CGT rate on qualifying disposals from 6 April 2025, rising to 18% for disposals from 6 April 2026.
Who has to pay Capital Gains Tax?
CGT applies to all taxpayers across the whole UK who sell, give away, exchange, or otherwise dispose of an asset (e.g., property, shares, cryptocurrency, patents, trademarks, equipment, valuables) and make a profit or “gain”. The tax is charged on the profit made on the asset. CGT isn’t charged on the gain if your gains for that year are below your annual exemption allowance.
Limited company businesses pay corporation tax on any profit generated from the sale of business assets. Business owner(s) and office holders may have to pay GCT on personal profit made on the sale of the company and any retained assets. Partnerships and non-limited companies that gain from the sale of their business will also need to pay their capital gains tax bills after reporting the gain on their self-assessment tax returns.
Our Capital Gains Tax accounting service
Daniel Wolfson’s CGT team is renowned for its capital gains advice that promptly and effectively addresses each client’s unique circumstances. Our aim is to compliantly apply all the tax relief for which you may be eligible, as well as any other exemptions.
Capital gains made on the sale of a business, shares, or property often exceed the available tax-free allowances. Tax-efficient capital gains advice and careful planning aim to ensure that transactions are structured to ensure you pay no more capital gains tax than you legally owe.
Our CGT advisory and accounting services for UK and non-UK residents include:
- Advice for property investors and landlords for tax purposes: e.g., lettings relief, buy-to-let property tax planning, private residence relief, residential property relief;
- IHT planning;
- Reporting CGT losses;
- Asset or property transfers to family members (losses, allowances, reliefs, and exemptions);
- Married or civil partner relief maximisation;
- Family trusts;
- Overseas properties; UK property
- Shares and unit trusts;
- Returns preparation and filing;
- HMRC valuation approvals;
- Business restructuring;
- Share and business valuations;
- Disposal reviews;
- Entrepreneurs’ and rollover reliefs;
- Legacy planning and business restructuring;
- Business owners and shareholders CGT liability future planning;
- BADR.
Contact us today for professional CGT advice
Daniel Wolfson’s friendly CGT team, in complete confidence, can help you understand what personal possessions you may have to pay tax on and how business or personal capital assets may attract CGT. According to your circumstances, we then draft a calculation in preparation to pay capital gains tax owed to HMRC before ensuring everything is reported, filed, and paid correctly.
CGT is notoriously complicated to navigate, making seeking professional advice highly advisable. Your personal expert advisor will explain the yearly tax-free allowance and other available reliefs and exemptions and lay out your options according to the circumstances.
Contact Daniel Wolfson today to find out more and to book an expert, no-obligation appointment to discuss any tax matters and specifically your CGT requirements.
Frequently asked questions about our Capital Gains Tax service
When should I contact a CGT accountant?
Taking expert advice from an accountant immediately you acquire or purchase an asset rather than when you come to sell it is the best advice. Many assets, such as charitable gifts, asset transfers between married couples or civil partners, private and vintage cars, personal possessions, or the sale of your primary residence, may not be subject to CGT. It’s a complex area! Hence seeking advice from a qualified accountant can help to maximise any reliefs and allowances that may apply.
How does business asset disposal relief work?
BADR, for those who qualify, now applies a 14% CGT rate on qualifying gains from 6 April 2025, increasing to 18% from 6 April 2026. However, the conditions vary depending on whether you are selling the business itself, selling shares in the business, lending assets to the business, or if you are a trustee. Here, gift hold-over relief may apply, which can mean CGT may not apply if you give away a business asset, although the person who receives it will have to pay CGT when they sell the asset.
What is the annual CGT allowance?
The capital gains tax allowance is £3,000 for 2025/26 (and £1,500 for trusts), unchanged from 2024/25; this is the annual amount of gains an individual can make before CGT is due. The allowances are liable to change, so you should independently verify the rates on the gov.uk website or consult an accountant if CGT is a concern among your tax affairs.
Parul is a dedicated writer and expert in the accounting industry, known for her insightful and well researched content. Her writing covers a wide range of topics, including tax regulations, financial reporting standards, and best practices for compliance. She is committed to producing content that not only informs but also empowers readers to make informed decisions.
