Capital Gains Tax Specialist
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GM Professional Accountants advise and provide service on Capital Gains Tax Return.
Capital gains tax is applicable when making a profit. This is normally when you sell an asset, this includes shares, property or business.
Currently, taxes are paid on the sale, they are subject to a number of factors such as the reliefs and incidental expenses.
The UK budget of 2016 included a number of reforms that determine the capital gains tax of an individual based on their income. For example, taxpayers that receive minimum income rates are liable to a CGT of 10% while those who get better income rates pay a CGT of 20%.
Lastly, the rates change when it comes to property sales. GM professional provide expert advice on properties and letting relief on our helpline on 0208 396 6128.
Capital gains tax on Shares
Investment experts buy and sell shares speculatively based on an underlying intelligence of the market trends. Secondly, It is important to note that you could either make a profit or a loss in the share business.
You can buy shares of a quoted company for a given price and then sell these at a higher price in the future. The difference between the selling and the buying price is effectively subject to a capital gains tax. Share transactions forms the basis of the capital gains tax.
Capital gains tax on property
The prices of properties are normally volatile with the passage of time. Some people participate exclusively in the business of buying and selling properties for the sake of making profits. The profit made from the sale is subject to tax after the deductions are made and these are legal fees and agent fees. Furthermore, it is important to note that gains from selling a first home is not subject to any form of tax.
Capital gains tax on business/ investment
You may plan to sell your business after it has gained some value. Furthermore, the proceeds made from the sale is also liable to the CGT. Lastly, in case you retain a stake of 5% or more in the business, under the business asset disposal relief you can be taxed at 10%.
Allowances on the CGT, the government of the UK has provided an incentive that encourages taxpayers to pay any capital gains tax due through the annual tax exemption. Therefore the financial year 2020/2021 has £12,300 tax free allowance.
Lastly, when £12300 profit is made then no tax is payable, the threshold will be updated each year.
The tax allowances will be renewed each tax year and cannot be carried forward. Filing tax returns annually will ensure that any CGT deductions made will be recorded by the tax authority and consequently.
Any government helpline usually guide citizens on how to file tax returns. Tax accountants normally provide an expert’s point of view on the technicalities related to tax returns. They will also provide invaluable advice on how to comply with the tax authority. We have been providing excellent services to our current clients in Ilford , barking, Romford and East Ham
Gm professional accountants have offices in London, Manchester and Essex