Capital Gains Tax

Selling or disposing of an asset will attract Capital Gains Tax as an individual.

You’ll need to pay Capital Gains Tax at a rate of up to 28% on the gain made when disposing of most assets, which may also include if you are gifting to family.

Our capital gains tax specialists can help you consider the impact of Capital Gains Tax for your personal circumstances. They also advise you on a range of tax reliefs that may be available such as entrepreneurs’ relief, rollover relief, hold over relief or main residence relief.

It is essential to take advice at an early stage to maximise the benefits of tax reliefs that may be available to you.

For example:

  • Structuring business ownership to take advantage of entrepreneurs’ relief can halve the tax rate that would otherwise apply to share and business asset disposals
  • Rollover relief, if applied in the right circumstances, can help defer capital gains tax
  • Holdover relief is available on the gift of an asset from one UK resident individual to another. The relief given is the amount of the chargeable gain that would have accrued to the transfer or on the disposal and this gain is deducted from the cost of acquisition of the transferee
  • Main residence relief is full of opportunities but it is a complicated area and there are several traps to be aware of. Anyone that has more than one residence should therefore seek advice before deciding to sell

If you are looking to sell or dispose of an asset, our private client team can advise you on any relevant exemptions and also ensure that the timing of the disposal has been fully considered to most effectively manage your tax liability on any sale.

About Tax

The PKF network are ranked as a Top 10 tax firm by Accountancy Age.