Capital Gains Tax

Like most taxes, Capital Gains Tax can be complex, so it pays to take advice from a specialist accountant. At Michael King & Co, this is one of our specialist areas. Our CGT accountants and advisors are well versed in the rules and regulations set by HMRC.

We will help to ensure that you do not pay any more capital gains tax than you need to. Often, investors and landlords end up paying more than they need to because they do not offset key liabilities. Our experienced accountants can help you minimise your liability whilst remaining fully compliant with HMRC.

What is Capital Gains Tax?

Capital Gains Tax (CGT) is a levy on the profit made from the sale of an asset that has increased in value. The most common assets that are subject to capital gains tax are stocks, bonds and real estate. But you are only liable to CGT when the asset is sold, not while you still own it.

Capital Gains Tax Advice for Individuals

There are many circumstances where you may be liable for CGT. For example, you may own shares outside of an ISA or PEP that have risen in value. Perhaps you are selling a property or holiday home for a profit. Other assets may include works of art or antiques. Our advisors will be able to tell you exactly what you are liable for, and what you can offset.

Capital Gains Tax Advice for Business

If you are a business owner or are looking to sell your share in a business, then we can help. We will make sure you make full use of the valuable tax reliefs available to you. And, importantly, we’ll make sure you understand the tax implications of your investments and business activities.

Calculating Your Tax Liability

Short-Term Capital Gains: This is when you profit from the sale of assets that you have owned for one year or less. It is taxed at your ordinary income tax rate (which is typically higher than the rate for long-term gains).

Long-Term Capital Gains: This is when you profit from the sale of assets that you have owned for more than one year. The tax rates for long-term capital gains are generally lower than short term CGT. These rates can be 0%, 15%, or 20%, depending on your income bracket.

Our tax advisors will help you to calculate your liability. Put simply, you subtract the purchase price of the asset from the selling price. If the result is positive, you have made a capital gain. If, however, it’s negative, you have a capital loss. In which case, we can use it to offset other gains and reduce your tax liability.

If you are an investor, understanding your CGT liability is crucial for effective financial planning and forming your investment strategy. Our team will help you to understand how it works and suggest strategies to minimise your tax liability.

Capital Gains Tax Advisors in Stanmore

Our offices are in Stanmore, but we offer Capital Gains Tax advice to our clients across London and the South-East. We have an experienced in-house team who offer a comprehensive range of accountancy services and advice. Contact us today to find out how we can minimise your CGT liability. Call us today on 020 8954 5879 or send us a message.