This service assists clients in the UK in understanding and fulfilling their capital gains tax obligations.
Our service includes:
- Capital Gains Tax (CGT) is a tax on the profit made from the sale or disposal of an asset that has increased in value. For UK resident landlords, CGT applies when selling rental properties.
- CGT is calculated by deducting the original purchase price (known as the "base cost") from the selling price (known as the "disposal proceeds"). The resulting gain is subject to tax.
- Each tax year, individuals have an annual tax-free allowance called the Annual Exempt Amount. This amount is deducted from the total gain before calculating the CGT liability. The Annual Exempt Amount for the tax year 2023/24 is £6,000 (subject to change).
- The gain is calculated by taking into account various factors, such as the purchase price, selling price, costs of buying and selling the property (including legal fees and agent fees), and any improvements made to the property during ownership.
- Principal Private Residence Relief (PPR): If the property being sold was your main residence for any period of ownership, you may be eligible for PPR. This relief can reduce or eliminate the CGT liability on a proportion of the gain. The period of residence and other conditions need to be met to qualify for this relief.
- You must report and pay any Capital Gains Tax on most sales of UK property within 60 days.
With our Capital Gains Tax for UK Client service, we provide expert guidance and support to ensure compliance with capital gains tax regulations. Our experienced team will assist you in understanding your tax liabilities, optimizing your tax position, and minimizing the impact of capital gains tax on your financial transactions.