Capital Gains Tax (CGT)

Capital Gains Tax (CGT) is the tax liable on profits made from selling or disposing of assets. It’s important to remember that CGT is only chargeable on any profits.

When disposing of an asset this is not just the sale of an asset but also includes giving it away as a gift, transferring it to someone else, swapping it for something else and getting compensation for it – like an insurance pay-out if it’s been lost or destroyed. There are allowances and reliefs available and MFW are fully versed in these and can advise on their application

You will pay CGT when you sell or dispose of the following:

• Property which is not your main residence, unless you have let your property, have used it for business purposes, or if it is very large. Residential property disposals require a return and any tax to be paid within 60 days of completion.
• Most personal possessions over £6,000– apart from your motor vehicle.
• Shares which are not in the form of an Individual Savings Account (ISA) or Personal Equity Plan (PEP).
• Business assets.
• Some Crypto assets depending on certain factors.

These are referred to as ‘chargeable assets’. Jointly owned assets are also subject to CGT, and you pay CGT on your share of any profits.

You may be able to reduce your tax bill by deducting losses or claiming reliefs. This will depend upon the type of asset.

​How we can help

As with most tax issues, the complexity of CGT can be very confusing for a novice. There are also penalties if you calculate your liabilities incorrectly. Therefore, we recommend you seek professional CGT advice to ensure you remain compliant on all areas of CGT whilst also maximising on your CGT opportunities.

Our personal tax accountants and tax advisors are very experienced in the area of CGT and other personal tax issues. They will assist you with planning ahead to optimise the use of your tax allowances and reliefs to keep your CGT liability to a minimum.