Capital Gains Tax

There are two aspects to the work we do for our clients on capital gains tax:

• Reporting
• Planning

Capital gains need to be reported on a self-assessment tax return and in the case of residential property where capital gains tax is due, a further return needs to be submitted to HM Revenue & Customs within 60 days of the property sale. This is certainly something we do a lot of, but it is typically historic.

The work we do on planning can be an incredibly useful exercise for our clients. We can calculate in advance the capital gains tax due on a transaction. Then we can consider ways of mitigating that tax. Does our client have losses brought forward? Could they reinvest the proceeds in a way that defers or even eliminates the capital gain? Have they made best use of their annual capital gains allowances?

A lot of the work we do revolves around claiming reliefs against capital gains. Private Residence Relief is rarely straightforward when someone sells a property and Business Asset Disposal Relief has many pitfalls when someone sells a business.

Capital gains tax must be considered when making a gift of an asset, so too must inheritance tax. When both taxes have to be considered together, often working in opposite directions, professional advice must be sought.