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 CGT annual exemption rate, set at £6,000 in the 2022/23 tax year and reduced to £3,000 in 2024/25, is dependent on several factors such as income tax band, total taxable income, and the assets involved, with UK residential property and some other assets subject to a higher CGT rate.
How and what you pay in tax on the gain is dependent on whether you are selling the asset in a personal or business capacity. The gains made by companies will be included in their profits and attract corporation tax.
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 tax on the gain, which ranges from 18% for basic rate taxpayers to 24% for higher rate taxpayers.
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. Either business asset disposal relief (BADR, formerly known as Entrepreneurs’ Relief) or investors’ relief (IR) may be applicable in relation to certain asset disposals to reduce the amount of CGT due.
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 a free, 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 that qualify means that you can reduce tax payable to 10% on any gains, which can add up to a significant saving. 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?
Up until the 2022/23 tax year, the capital gains tax allowance was £12,300; this reduced to £6,000 before a further reduction to £3,000 was applied to gains made in 2024/25. Therefore, £3,000 is the current total amount of gains a person can make before they are liable to pay CGT. 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.
