Capital Gains Tax (CGT) is a tax charged on the capital increase (revenue) acquired from the disposal of the majority of assets. The moment you relinquish an asset determines when the tax becomes payable and when you need to submit your tax return.
What constitutes an asset and how can capital gains tax be incurred upon relinquishing ownership?
An asset is not merely a tangible possession owned completely; it could also be an intangible asset, for instance, goodwill within a corporation or an option on assets. Furthermore, it might be an item in which you hold a stake, such as a leasehold interest in property.
The act of disposing an asset isn’t limited to selling it for cash. It encompasses any transfer of ownership through exchange, donation, or settlement on trustees.
What is the capital gains tax rate and how can I decrease my capital gains tax obligation?
At present, the capital gains tax rate is 33%, meaning roughly one-third of your profit will be taxed, except if your disposition is eligible for a capital gains tax exemption, relief, or a reduced rate.
We frequently receive inquiries regarding capital gains tax advice on:
- Business sales
- Investment structuring in new enterprises
- Capital gains tax liability reduction through efficient use of CGT losses
- We assist our clients in minimizing the capital gains tax due on these transactions by:
- Maximizing the benefits of tax reliefs, e.g., retirement relief,
- Fully utilizing tax efficiencies, such as:
- Realizing capital losses to offset future capital gains,
- Transferring assets to the subsequent generation when asset values are low,
- Reorganising share ownership in your company in a tax-efficient manner.
Leveraging tax exemptions applicable to specific gains arising from property and the sale of trading subsidiaries.
We apply our expertise across various matters to alleviate your capital gains tax burden.