The Financial Management Centre offers a capital gains taxation (CGT) advisory services. This service is offered to both businesses and individuals alike. Similar to inheritance tax, CGT is a voluntary tax payable by all UK citizens and businesses. This payment is triggered when the owner of the asset makes a capital gain upon the disposal of that asset. The tax is made payable to HMRC using a self-assessment tax return.
EXAMPLE ITEMS INCURRING CGT
Items commonly incurring a capital gain include:
- Dwelling house that is not the owners principal residence
- Shares in a business
A ‘triggering event’ must occur for a CGT liability to arise. This triggering event typically includes the sale or gifting of the asset concerned.
THE AIM OF OUR CGT ADVISORY SERVICE
The aim of The Financial Management Centre’s CGT advisory service is to help businesses and individuals reduce or delay the payment of CGT to HMRC. We advise on the availability of specific reliefs and deductions applying to clients’ particular circumstances.
THE RATE AT WHICH CGT IS CHARGED
When calculating CGT, HMRC compares the current value of the ‘disposable asset’ to the price the owner originally paid. Taxation applies only to the element of ‘gain’, and not the entire sale or gift value. The tax payer must settle the bill within 30 days after the sale of the asset. Late payment could result in a fine, interest on taxation overdue and even prosecution. Currently CGT is charged at 18% for basic rate tax payers. Higher/additional rate tax payers must settle 28% of their gain by way of CGT. Businesses taking advantage of ‘Entrepreneurs Relief’ are charged a flat rate of 10% on the capital gain. Trustees and the personal representative of a deceased person are charged at a rate of 28%.
COMMON CGT DEDUCTIONS AND RELIEFS
The Financial Management Centre’s service aims to mitigate or delay the amount of CGT you must pay to HMRC. To meet this aim our expert advisors device a CGT mitigation strategy on your behalf. Initially our advisor calculates the exact CGT bill upon the asset’s disposal. Secondly we outline all various deductions, delays and reliefs available to you. Finally we structures the sale or gifting of your asset(s) in order to implement these deductions, delays and reliefs. Your appointed advisor drafts your CGT self-assessment tax return on your behalf.
Common CGT deductions, delays and reliefs include:
- Making good use of your annual exemption
- Offsetting all professional fees spent on the asset’s disposal
- Utilising your pension and/or trust as a CGT saving vehicle
- Becoming non-domicile for CGT purposes
- Spreading the sale of the asset over several years to maximise CGT reliefs
- Reinvesting the proceeds of sale into new assets e.g. rollover/holdover relief and Enterprise Investment Scheme deferral relief
- Transferring gains between husband and wife or between civil partners
- Letting relief
- Principle private residence relief
- Loss set-of
- Entrepreneur relief
CONTACTING THE FINANCIAL MANAGEMENT CENTRE
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