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Capital Gains Tax.

Capital Gains Tax (CGT).

Capital Gains Tax (CGT) is payable on any financial gains you make as a result of the sale of an item or investment such as shares, property, art or jewellery. However CGT does not apply to financial gains as a result of inheritance, and tax on these windfalls fall under Inheritance Tax (IHT).

The Capital Gains Tax (CGT) that is due on the profits from a sale will be determined by a number of factors, including your level of income, personal allowances and any tax efficient wrappers you may have in place such as ISAs and family trusts. All this means that getting expert advice is vital to ensure that you are not paying too much.

Tax reliefs.

There are, however, a number of tax reliefs which may be available to help you reduce your tax liability, such as Business Asset Disposal Relief (formally known as Entrepreneur’s Relief) or Rollover Relief which are available to individuals; getting the right professional advice can help you take advantage of the tax efficient schemes which may be available to you.

Private individuals, sole traders, partners in partnerships are required to pay Capital Gains Tax, companies however fall under the separate category of Corporation Tax.

CGT for businesses.

For business people registered as a sole trader or partnership there are various ways in which your adviser can help to mitigate your exposure to CGT. Business Asset Disposal Relief for example is an effective way of minimising your tax exposure up to as little as 10% of the profits of any sale. However, benefiting from these reliefs is dependent on fulfilling strict criteria which can only be met through careful planning. Enterprise Investment Schemes (EIS) are another option which can often be a solution to reducing tax liabilities and minimising CGT as profits are reinvested into a fund, but again, taking advantage of EIS can only happen where careful forward planning has occurred and specific time criteria have been met.

The team

Meet our tax team.

“What a pleasure it has been working with each and every one of you over the last 6 months. Approachable, extremely knowledgeable in your fields and supportive – I truly felt you were working with me each step of the way. Scrutton Bland are incredibly luckily to have such talented people working for them with great customer relationships.”

Fiona Wilder, Finance Manager, Belmont Green Finance Limited

Get in touch.

Our qualified and professional team of tax advisers are on hand to help you navigate the tax system, giving you the peace of mind in knowing that you are paying the right amount of tax. All of our advisory teams work closely with each other, which means that we can take a joined-up approach to your tax affairs both in terms of your business or private wealth.

Call us on 0330 058 6559
Email us at hello@scruttonbland.co.uk

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With offices in Bury St Edmunds, Colchester, Ipswich, and Norwich we’re close enough for personal meetings with clients from anywhere across the East of England. Got something on your mind? We’ll be happy to listen and give you our thoughts.