Capital Gains Tax Accountant Services

Capital Gains Tax is a tax on a profit or a gain made when an asset is sold. For example, when a business, a shareholding or a property is sold for a higher price than it originally cost, the seller may incur Capital Gains Tax. This tax can be as high as 28% meaning that your Capital Gains Tax liabilities can represent a significant portion of your profits from a sale.

However, this does not have to be the case. With careful planning and consideration, you can often structure a transaction in a way that will minimise your tax obligations, or take advantage of allowances that may apply to reduce your liability. There are several legally compliant strategies you can adopt to limit your Capital Gains Tax bills, so it can be valuable to seek expert tax advice whenever you plan to buy or sell a business asset.

The Capital Gains Tax experts at Monetta can help. Our team has a wealth of experience in advising individuals and businesses on meeting their tax obligations and making tax-efficient financial decisions. To learn more about how we could help, get in touch today.  Call your local Monetta office or use our online enquiry form to request a call back at your convenience.

Can I Reduce Capital Gains Tax Liabilities?

In most cases, you will need to pay Capital Gains Tax on business assets or property. However, careful planning and expert advice can ensure that transactions are structured as tax efficiently as possible to minimise any Capital Gains Tax liability and to make sure that all available reliefs are claimed. Our team can support you in calculating Capital Gains Tax liabilities, work with you on valuations of assets and businesses to ensure you sell for a fair price, and advise you on any other financial implications.

We can discuss your eligibility for Business Asset Disposal Relief, which sets the rate of tax at 10% on qualifying assets, rather than a maximum of 28% without this relief. Thanks to our thorough knowledge of tax reliefs and allowances, we can help you to understand the tax implications of any business decisions you make, and ensure you minimise your tax liabilities while remaining compliant with the relevant legislation.

What Services Does Monetta Offer?

Monetta has a team of expert tax accountants who can provide guidance and support to individuals and businesses on a wide range of Capital Gains Tax issues. We have supported businesses and individuals with Capital Gains Tax planning for many years. Whether you need specific Capital Gains Tax help or simply want general help with your tax affairs, Monetta can help you in a variety of ways, including:

• Assisting Individuals on the disposal of personal assets, shares, or properties;
• Assisting property investors looking to sell buy-to-let properties;
• Assisting businesses on the disposal of land, buildings or plant and machinery;
• Transferring properties to children, or other family members in a tax efficient way;
• Restructuring businesses;
• Advising on Shares and Capital Gains Tax;
• Advising Trusts in relation to Capital Gains Tax; 
• Advising non-UK residents how they are affected by UK Capital Gains Tax rules; 
• Advising UK residents how they may be affected when selling overseas properties, and 
• Advising on how best to off-set Capital Gains Tax losses.

Our approach is thorough and based on your specific goals. By reviewing your financial circumstances and considering all of the relevant factors, we can ensure that we provide the best and most accurate Capital Gains Tax advice.

Why Choose Monetta?

Alongside Capital Gains Tax advice, our business accountants can guide you on a variety of other considerations relevant to business tax liability, making Monetta a one-stop shop for your organisation's tax compliance needs. Our qualified tax advisors can prepare accurate and thorough tax returns on your behalf that ensure you always pay what you owe, and no more. We can also offer guidance on accounting, bookkeeping compliance and more.

If you are an individual selling a high-value asset, it is vital to seek professional advice in order to maximise your profit from the sale. Similarly, if you prepare a self-assessment tax return, it is a good idea to have it checked over by an experienced tax accountant who can ensure it is legally compliant and takes advantage of any relevant allowances. This helps to ensure you are not at the risk of overpaying your taxes, which in turn benefits the financial position and stability of your business.

Monetta combines the resources of a national firm with the approach of a local business. That means we invest in each client individually and take the time to understand your financial situation and your goals. In turn, that allows us to tailor our advice, but also ensures we have the available resources to scale our services to meet your needs.

FAQs about Capital Gains Tax

When do I pay Capital Gains Tax?

A person or business is required to pay Capital Gains Tax when it sells, gives away, exchanges, or otherwise disposes of an asset and makes a profit. This applies more commonly in a business context or when valuable assets are involved. There are also exceptions and allowances that apply - for example, you do not need to pay Capital Gains Tax when you sell your home, unless it is a second home.

You will incur a Capital Gains Tax bill when you sell assets such as shares, property, business assets or valuable personal possessions like jewellery, and you make a profit from the sale. This applies even if you give away these assets if their market value has increased since you purchased them, or if you transfer them in exchange for something else rather than selling them. At the same time, there may be tax free allowances and tax relief opportunities that will offset Capital Gains Tax for a specific transaction or over the course of a tax year. Working with experienced Capital Gains Tax advisors can help you to structure transactions in a way that will minimise your tax liability, take advantage of the yearly tax free allowance or any reliefs that apply, and ensure you only pay the taxes you owe.

In terms of the deadline for payment, you must usually pay tax by 31 January following the end of the tax year in which a gain was made. For Capital Gains Tax paid on residential property sold or transferred, you must pay within 60 days of the sale's completion. However, these rules are subject to change and should speak to the chartered accountants at Monetta for up-to-date guidance and information.

What percentage is Capital Gains Tax?

Capital Gains Tax rates change according to the type of asset involved and, for non-business transactions, the tax band of the seller. They are also subject to change each year as part of the government's budget announcement, so it can be difficult to stay up-to-date with what you owe. 

The rates for the year 2024/25 are as follows: 

• Basic rate taxpayers: 18% on residential property, 10% on other valuable assets
• Higher and additional rate taxpayers: 24% on residential property, 20% on other valuable assets
• Investment fund managers: 28% on gains from ‘carried interest’

However, this is only the very basic percentages. Factors like your taxable income, annual exempt amount, and any tax reliefs that apply to particular assets can all affect how much you pay. For example, basic rate taxpayers may need to pay the high rate percentages if the sale of the asset takes their income above the basic Income Tax band, after any allowances or reliefs.

From April 2024, the Capital Gains annual allowance will be £3,000, which means that you do not need to pay tax on the first £3,000 of profit you make when selling an asset. This is a reduction from the previous year. Principal private residence relief means that you do not need to pay Capital Gains Tax at all on a UK residential property that is your main home. However, individual circumstances affect every transaction differently, and it is important to engage professional Capital Gains Tax services before selling any high-value assets. The team at Monetta can help you to understand how much tax you will owe and how you may be able to minimise it.

Do I need an accountant for Capital Gains Tax?

It is always best to work with an accountant when managing your Capital Gains Tax liability. Things can become complicated, especially if your financial affairs themselves are complex. For businesses or individuals who own multiple assets, trade frequently, or hold international investments, professional Capital Gains advice may be the only way to file and pay your taxes accurately. For people who own more than one property or who want to minimise the amount of Inheritance Tax that will be owed on their estate, an accountant can help you to plan and meet your financial obligations. Even if you think your affairs are relatively simple, it is important to file tax statements accurately and this can be complicated without professional support.

Beyond practical help with the calculations involved, the tax accountants at Monetta can help you to identify and apply any relevant tax reliefs and exemptions that may reduce your liability. Entrepreneurs’ Relief, Investors’ Relief, or Private Residence Relief may apply in specific instances, and our experience with UK tax laws and best practices means we can help to ensure you only pay the taxes you owe.

If you are considering selling an asset, we can also help you to plan strategies that will minimise how much tax you must pay, whether by timing the disposal of assets effectively or structuring deals optimally.

There is also peace of mind to be gained by working with a chartered tax accountant to manage your tax responsibilities. If you are not familiar with tax rules, how to report Capital Gains Tax or how to file a tax return, our accountants can help you to avoid mistakes and meet deadlines. Errors, inaccuracies and late filing can lead to legal penalties, fines or an overpayment of tax.

While there is no legal obligation to work with a tax accountant to file and pay taxes correctly, it is often the best way to minimise your liability, avoid overpayment, and enjoy as much of your profit as possible.

Contact us

Monetta’s team of tax experts has many years of combined experience in advising on Capital Gains Tax matters, and the reliefs and savings that apply. Our tax accountants stay up-to-date with the latest developments to ensure you maintain compliance at all times, while also taking advantage of the allowances on offer to ensure you minimise your tax liability.

Contact Monetta today to learn how we can help. Email us using our enquiry form or get in touch directly with your local office.

You can also visit our team page to find out more about our expert advisers and what they can do for you and your business.