Our capital gains tax specialists can help you consider the impact of capital gains tax for your personal circumstances. They also advise you on a range of tax reliefs that may be available such as business asset disposal relief, rollover relief, hold over relief or main residence relief.
Capital gains tax
Maximising the benefits of capital gains tax reliefs that may be available
When you as an individual sell or dispose of an asset this may attract capital gains tax
Capital Gains Tax (CGT) is paid on profits from selling properties that are not primary residences, such as holiday homes or buy-to-let properties. You’ll need to pay CGT at a rate of up to 28% on the gain made when disposing of most assets, which may also include if you are gifting to family.
Chancellor Rachel Reeves has not ruled out changes to CGT in the upcoming Budget.
In the latest blog by John Endacott, Head of Tax, he says: “I think the 10% tax rate (business asset disposal relief) could well be abolished on 30 October. I’m less certain on the outlook for the main CGT rate but it’s probably up. Maybe an unindexed flat rate of 24% on everything, but possibly more. An increase in CGT does run counter to the government’s growth agenda, though. These changes could raise low billions of pounds (£1-3 billion maybe).”
Take advice at an early stage to maximise the benefits of tax reliefs
Business asset disposal relief
Structuring business ownership can halve the tax rate that would otherwise apply to share and business asset disposals.
Rollover relief
Rollover relief, if applied in the right circumstances, can help defer capital gains tax.
Holdover relief
Holdover relief is available on the gift of an asset from one UK resident individual to another.
Main residence relief
Anyone that has more than one residence should therefore seek advice before deciding to sell.
Speak to a tax expert
Looking to sell or dispose of an asset? We’ll listen carefully, and advise you on any relevant exemptions and ensure that the timing of the disposal has been fully considered to most effectively manage your tax liabilities.