Make sure you are tax efficient
Are you looking to sell your second home? Pass on some family heirlooms? Or even hand over your business? Even if you're not selling the asset, just gifting it, you may be expected to pay capital gains tax.
What is Capital Gains Tax?
Capital gains tax (CGT) is tax payable on assets that have increased in value since they were purchased. For example, if you bought a holiday home for £70,000 and later sold it at a price of £180,000, you would pay CGT on the £110,000 increase. CGT is also applied to shares, family heirlooms, business assets and any personal possessions worth more than £6,000 (excluding cars).
Every year you get a capital gains exemption of £12,300 (2020/21). It's wise to try and use this, as it doesn't roll over into following years. As well as this, there are different rates of capital gains tax for different sized assets. Currently the basic rate is 10%, rising to 20% if you fall under the higher income tax band, for residential property there's an additional 8% on each band, making them 18% and 28% respectively.
Without proper knowledge of the rules of capital gains tax, you may end up paying more than you have to. At MoynanSmith, we're CGT experts. We'll work with you to decide the most efficient way to dispose of your assets. With our help you'll save money and time otherwise spent trying to work out the best course of action.
We'll help you with the following issues and more:
- Capital gains tax on buy to let
- Capital gains tax on inherited property
- Capital gains tax on property
- Capital gains tax on shares
- Capital gains tax on land
Make sure you get the most out of your assets, and reduce your CGT liability. MoynanSmith Chartered Accountants and Tax Advisers based in Carlisle, will give you the best capital gains tax advice. We'll make sure you make as much as possible.
Fill out our contact form for a free initial meeting. Or give us a ring on 01228 586790 to book one now.