Capital Gains Tax Services | Expert Capital Gains Tax Accountants UK

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Capital Gains Tax (CGT) is an important consideration for individuals and businesses when selling or disposing of certain assets. Whether you’re selling property, shares, or valuable possessions, understanding CGT can help you minimise your tax liability and ensure compliance with HMRC regulations. At Zuizz Business Services, our capital gains tax advisors offer expert guidance to help you navigate tax complexities and ensure compliance with the latest regulations.

In this guide, we’ll explain what Capital Gains Tax is, how it applies, and what steps you can take to reduce your tax bill.

What is Capital Gains Tax?

Capital Gains Tax is a tax on the profit made when you sell or dispose of an asset that has increased in value. The tax is applied to the gain, not the total sale amount.

Which Assets Are Subject to CGT?

You may need to pay CGT when you sell or dispose of:

✅ Property (excluding your main residence in most cases)
✅ Shares and investments (outside of ISAs or pensions)
✅ Businesses
✅ Valuable items (e.g. antiques, jewellery, art) worth over £6,000

Which Assets Are Exempt?

Some assets are not subject to CGT, including:

✅ Your main home (provided it qualifies for Private Residence Relief)
✅ Personal belongings under £6,000 (except for business assets)
✅ ISAs and pensions
✅ Gifts to your spouse or civil partner

Capital Gains Tax Services UK – What We Offer Our capital gains tax services UK cover:

✅ CGT calculations to determine your liability ✅ Tax-efficient investment strategies to reduce your tax bill ✅ Assistance with HMRC reporting ✅ Professional guidance on asset disposals

Capital Gains Tax Rates for 2024/25

CGT rates depend on your income tax band and the type of asset sold.

Taxpayer Status Shares & Investments Property

Basic Rate (income under £50,270) 10% 18%
Higher/Additional Rate (income over £50,270) 20% 24%

Annual Exempt Allowance

Every individual has a tax-free allowance before CGT applies:

  • 2023/24: £6,000
  • 2024/25: £3,000

If your total gains are below the annual allowance, you won’t need to pay CGT.

How to Calculate Capital Gains Tax

  1. Determine the gain – Subtract the original purchase price from the sale price.
  2. Apply allowable deductions – These may include legal fees, improvement costs, and selling expenses.
  3. Subtract the annual allowance (£3,000 for 2024/25).
  4. Apply the relevant CGT rate based on your income tax band. You can also use a capital gains tax calculator to estimate your tax liability more accurately.

Example Calculation

  • You sell a rental property for £250,000.
  • You originally bought it for £200,000 and spent £10,000 on renovations.
  • Your total gain is:
    £250,000 - (£200,000 + £10,000) = £40,000.
  • After deducting the £3,000 CGT allowance, the taxable gain is £37,000.
  • If you are a higher-rate taxpayer, you’ll pay 24% CGT on £37,000, resulting in a £8,880 tax bill. To simplify these calculations, consider using a capital gains tax calculator.

Ways to Reduce Capital Gains Tax

✅ Use Your Annual Exemption – Plan disposals to take advantage of the annual tax-free allowance.
✅ Transfer Assets to a Spouse – No CGT applies to gifts between spouses or civil partners.
✅ Offset Losses – If you sell assets at a loss, these can be used to reduce your taxable gains.
✅ Invest in Tax-Efficient Accounts – Shares held in ISAs and pensions are CGT-free.
✅ Claim Private Residence Relief – If selling your main home, you may not need to pay CGT.

When and How to Report CGT to HMRC

  • For UK property sales, you must report and pay CGT within 60 days.
  • For other assets, CGT is reported on your self-assessment tax return by 31st January after the tax year of disposal.

How Zuizz Can Help

Navigating Capital Gains Tax can be complex, but our expert capital gains tax accountants can:

✅ Calculate your CGT liability accurately
✅ Identify tax-saving opportunities
✅ Assist with reporting to HMRC
✅ Advise on long-term investment tax planning

Need help with CGT? Contact us today to discuss how we can assist with your tax planning.

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