Capital Gains Tax is payable to HM Revenue & Customs (HMRC) when an individual, trust or company sells or transfers or gifts property (tangible or intangible) to another entity realising a substantial financial gain.
As with most taxes, there are numerous exemptions and reliefs available, most of which are complex and require specialist advice. Some assets are not liable to Capital Gains Tax, whereas others are only liable above a certain value. There is also an annual allowance, enabling individuals to make small gains on disposals each year without paying any tax at all. If you own anything of value and decide to sell it, you potentially fall within the realms of Capital Gains Tax. If you do not inform HMRC of your disposal, you could also be liable to penalties where HMRC feels it appropriate.
Complicated and detailed calculations are required in order to finalise how much Capital Gains Tax is payable on the disposal of a particular asset. There are many reliefs and exemptions available, which can reduce or eliminate your tax bill, and should help ensure you pay the minimum amount of Capital Gains Tax.
Our advisers have many years experience in effective tax planning strategies to protect business and personal assets from the impact of Capital Gains Tax. Through a mixture of knowing what deductions can be made in computing the taxable gain, we can make a substantial impact on the actual CGT payable, whether the disposal has been made or is being considered, and help negotiate with HMRC in order to achieve the most favourable valuations.