Buying and selling in London is an extra challenge. Prices for property and other assets can be higher than in the rest of the country. Capital Gains Tax accountants specialise in disposals and purchases to ensure you only pay on the assets that attract this tax. AccountingPrenuer has experienced and knowledgeable accountants in London who understand all areas of Capital Gains Tax (CGT) covering the disposal of assets for both businesses and individuals.

60-Day Reporting on Capital Gains Tax

HMRC now require taxpayers that make a gain to file and pay their CGT within 60 days. Our CGT advisors will calculate the tax liability and identify any potential tax savings; this could reduce your CGT tax bill to nothing. Using our accountancy services means you can be advised when and how to report.

Self Assessment adjustment

When you file a self-assessment tax return, it may require an adjustment for any under or over-payments of CGT. You will need, for instance, to keep a record of your CGT. Again our self-assessment tax return service can assist with this.

Assets that attract Capital Gains Tax

There are many assets that you will need to pay capital gains tax on. When reporting your asset disposals, you calculate the profits, and you only have to pay CGT on your overall gains above your tax-free allowance (called the Annual Exempt Amount). Working out your final tax bill can be frustrating without the assistance of expert help from a CGT accountant. Disposals covered by CGT include personal possessions: property, business assets, and shares, though each asset has specific rules.

Personal Possessions

Most personal possessions that are valued above the currently defined value ( £6000 ) will mean you have to pay CGT. This does not include, for example, your car. Jewellery and paintings are among the high-value ticket items that often change hands, and CGT may be applicable even if you have given away these items. There are some ways to reduce the CGT, for example, if you have spent money improving the item. Although if you have used the item for business and have claimed on it through your business, the rules are different again.

You don’t have to pay Capital Gains Tax on personal possessions with a shorter lifespan of fewer than 50 years. This covers all machinery and includes things like antique clocks or watches. If you are disposing of a collection and each part of the collection is valued under the currently defined value, then CGT is not applicable. These are a few examples of how complex CGT is and how we can help you make savings on your tax bill.

Property and Capital Gains Tax

It is common for property assets in London to far exceed the tax-free threshold. Which can make CGT very expensive, particularly in combination with your income tax liability. Many landlords and investors are paying far too much tax. Particularly when selling their property assets, as they don’t always have the proper knowledge of any allowances or relief. This is why it is essential to have a qualified CGT accountant. They will ensure that you are claiming all eligible reliefs to bring down your CGT liabilities wherever possible. Tax costs for renovations and repair can also be looked into by our Property accountants.

Business Assets

Business assets are one area that needs particular attention. For this, you need to have an accountant with the proper knowledge because you can end up reducing your profit margin. Businesses buy and sell assets all the time. Business assets you may need to pay tax on include land and buildings, fixtures and fittings, plant and machinery, shares, registered trademarks and your business’s reputation. Business owners are not always aware that CGT applies to these assets. Therefore they need careful advice to avoid fines from HMRC.

Shares and Bitcoin

Many investors buy and sell shares as a way to increase assets. Each time you trade your shares, you can find yourself liable for CGT. Those trading in Bitcoin should know this digital currency has now been added to the list of assets attracting this tax. Bitcoin is particularly difficult to value as the exchange rate can differ each day.

Exemptions from Capital Gains Tax

There are many instances where CGT is not applicable. One example is that you do not have to pay Capital Gains Tax on assets you give away to charity. Although if you sell the item to a charity, this will mean that you do have to pay. The rules are complex, although, with proper guidance, you can have your CGT bill reduced to the minimum and, in many cases, pay nothing.

Our Capital Gains Tax Accountants

At AccountingPreneur, we also provide VAT, bookkeeping and payroll services. These services are all available in London. AccountingPreneur is run by entrepreneurial accountants. These accountants are also business owners themselves, meaning they understand the day-to-day challenges faced by business owners. And what kind of help they need, specifically tax. The CGT team have experience from the top firms and SME sectors. Their aim is to provide innovative, cutting edge and tailored solutions to clients. Our dedicated CGT accountants will work closely with you. They ensure you manage the disposal of your private and commercial assets to mitigate tax liabilities.