CAPITAL GAINS TAX CALCULATIONS AND PLANNING
Capital Gains Tax (CGT) is due if you dispose of an asset such as shares or property, and the profit from all disposals in a tax year (after deducting any available capital losses) is more than the CGT allowance.
The CGT allowance for the current 2024/25 tax year is £3,000, and under current tax rules it will stay at this level for all future tax years. This is significantly lower than the CGT allowance in recent tax years, and means that even a fairly modest capital gain will result in CGT being payable.
Many people are not aware of the tax rules on capital gains, or the implications of not declaring taxable capital gains to HMRC on their Tax Returns. Similarly, many people don't realise that capital losses need to be 'claimed' by including them on Tax Returns or by writing to HMRC within 4 years of the end of the tax year in which they were made.
As a Chartered Tax Adviser specialising in CGT with a wealth management background, I can help. By calculating your potential capital gains using the complex share matching rules, then devising a disposal strategy by using or claiming capital losses, spousal transfers to utilise additional allowances and lower CGT rates, as well as other less well-known reliefs I should be able to eliminate or reduce your tax bill.
Where there are gaps in your records I will be able to make reasonable estimates for missing acquisition details rather than using 'nil cost'.
Please note that I am not a financial adviser, so I will never give advice on whether a specific shareholding should be sold from an investment perspective. I will purely be looking at the estimated tax savings.
Fees
My fees for this work start at £200 but I offer a discount for payment in advance and if couples use this service.
The fee will be higher if the calculations would take me longer due to the number of holdings, volume of transactions, how long the shares have been held, and if there have been many complex share reorganisations. However, I would always let you know what my fee would be prior to starting any work.
There would be an additional fee of £150 for clients using the UK Self-Assessment Tax Return Completion service. This fee is lower than the standard fee for using that service.
Please contact me if you would like a 'no obligation' chat about this service to see if I can save you some tax.