Capital gains tax or CGT is the tax payable on any gain/profit you make when selling any used asset, or even business or part of the business which has increased in value. Capital gains tax is charges in varying rate depending on the nature of the assets involved and the income tax band of the tax payer. On gains on sale of properties it is charged at 18% or 28% while on other assets its charged 10% or 20%. Every individual is eligible for an annual exemption, presently (2021-22) this exemption is £12,300 – any gains up to this limit are exempt from tax. In addition to this annual exemption, there are other tax relieves which are available in this regard as well therefore we make sure that you fully benefit from the tax reliefs and exemptions which by law are available for CGT. These reliefs can get you Substantial savings in tax; for example business asset disposal relief (BADR) or Investors relief is available for disposal of businesses, and Private residence relief and/or letting relief could be available for gain on sale of properties.
In short we believe that planning plays a key role in reducing your tax liability legally therefore we ensure that our clients are aware of their options to draw cash/share beforehand by assist our clients in tax planning throughout the lifetime of their businesses.