Capital gains tax is broadly speaking the tax charged on the profit on sale of an asset. Assets for this definition might be an investment property, items with a value over £6,000, business assets or more commonly; shares in a business. However, there are many types of capital gains tax relief (CGT Relief) that can be achieved to reduce the amount of capital gains tax you pay at the end of the year.
There are several capital gains tax reliefs and allowances applicable to chargeable gains so it is important to understand what is available to you before you sign an agreement to sell an asset, as some reliefs will depend on particular circumstances and will be more beneficial than others.
We encourage our clients to contact us before making decisions to buy or sell assets. It is common to forget the tax impact of a transaction until after it has been completed. The purchase of a commercial investment property is a common example. Often elections are made by the seller for the capital allowance value of the asset to be in their favour. This is hidden away in the midst of the contract and not noticed until the company tax return is being prepared.
If you are considering purchasing or selling a large value asset please don’t hesitate to contact us for more information.
Convenience and care are our core strengths. By focusing our services around these principles we have developed long lasting relationships with our clients. See below for how.
We want our clients to have choice and so we use all the major accounting packages to help them work with the best solution for their business.
We want our clients to be stress free, so we meet at their premises, respond promptly to queries and accept calls out of normal working hours.
We want our clients to receive a technical service, so all our work is signed off by either a qualified accountant, chartered tax adviser or tax specialist.
Most importantly, we take interest in our clients as we love what we do. We encourage regular and open discussions to avoid focusing on standard compliance and spend more time discussing development of their businesses.
QuickBooks Ask The Expert – Rachel!
We were over the moon that Rachel was asked the host Ask The Expert, a daily series run by Intuit QuickBooks to help small business own ...