Capital Gains Tax (CGT) Planning & Advice
Tailored CGT planning for property, shares and other assets, maximising reliefs, optimising timing and strategic elections to minimise your capital gains tax liabilities.
Capital Gains Tax Planning
Capital Gains Tax (CGT) applies when you dispose of assets that have increased in value, including property, shares, investments, and other chargeable assets. With careful planning, you can significantly reduce or eliminate CGT liabilities through strategic use of reliefs, exemptions, and timing.
Our capital gains tax planning service provides comprehensive advice on minimising CGT liabilities across all asset types, ensuring you utilise all available reliefs and exemptions while maintaining full compliance with HMRC requirements.
CGT Rates and Annual Exemptions
Capital gains tax rates depend on your income tax band and the type of asset disposed of:
- Residential Property: 18% for basic rate taxpayers, 28% for higher/additional rate taxpayers
- Other Assets (shares, investments, etc.): 10% for basic rate taxpayers, 20% for higher/additional rate taxpayers
- Annual Exemption: £6,000 for 2023/24 (reducing to £3,000 for 2024/25), allowing tax-free gains up to this amount each tax year
Strategic timing of disposals can help utilise annual exemptions effectively and potentially reduce the overall CGT rate applied.
Property Capital Gains Tax
Property disposals are subject to CGT, with several reliefs available to reduce or eliminate liabilities:
Principal Private Residence Relief (PPR)
PPR relief exempts gains on your main residence from CGT. Our planning includes:
- Maximising PPR relief through strategic property nominations
- Utilising periods of absence and lettings relief
- Planning for multiple property ownership to optimise relief
- Structuring property disposals to maximise PPR coverage
Property Investment CGT Planning
For investment properties, we provide:
- Strategic timing of property disposals to utilise annual exemptions
- Planning for multiple property disposals across tax years
- Utilising capital losses to offset gains
- Structuring property ownership to optimise CGT positions
Shares and Investments CGT
Disposals of shares and investments are subject to CGT, with various reliefs and planning opportunities:
Share Disposal Planning
Our share CGT planning includes:
- Strategic timing of share disposals to utilise annual exemptions
- Bed and breakfasting rules and 30-day rule planning
- Share identification rules to optimise CGT calculations
- Utilising capital losses from previous years
Business Asset Disposal Relief (formerly Entrepreneurs' Relief)
For qualifying business asset disposals, we help:
- Assess eligibility for Business Asset Disposal Relief (10% CGT rate, up to £1 million lifetime limit)
- Structure disposals to maximise relief availability
- Plan for multiple disposals to utilise the lifetime limit effectively
CGT Reliefs and Exemptions
Annual Exemption
Each individual has an annual CGT exemption (£6,000 for 2023/24, reducing to £3,000 for 2024/25). We help:
- Plan disposals to utilise annual exemptions each tax year
- Coordinate disposals across spouses/civil partners to double exemptions
- Time disposals strategically to maximise exemption use
Capital Losses
Capital losses can be used to offset gains, reducing CGT liabilities. Our services include:
- Identifying and utilising capital losses effectively
- Planning loss-making disposals to offset gains
- Carrying forward unused losses to future tax years
- Utilising losses from previous years
Marriage and Civil Partnership
Transfers between spouses/civil partners are generally exempt from CGT, providing planning opportunities:
- Transferring assets to utilise lower-rate taxpayer's annual exemption
- Transferring assets before disposal to optimise CGT rates
- Utilising both spouses' annual exemptions through strategic transfers
CGT Planning Strategies
Timing of Disposals
Strategic timing can significantly reduce CGT liabilities:
- Spreading disposals across tax years to utilise multiple annual exemptions
- Timing disposals to fall within lower income tax bands
- Coordinating disposals with other income to optimise tax rates
Asset Structuring
Structuring asset ownership can optimise CGT positions:
- Joint ownership to utilise both spouses' annual exemptions
- Company structures for certain assets (considering corporation tax implications)
- Trust structures for long-term CGT planning
Non-Resident Capital Gains Tax
Non-UK residents disposing of UK property are subject to non-resident CGT. Our services include:
- Non-resident CGT compliance and reporting
- Planning for non-resident property disposals
- Utilising available reliefs and exemptions
- Coordination with UK tax obligations
Why Choose Acumon for CGT Planning
Comprehensive CGT Expertise
Our tax team has extensive experience in CGT planning across all asset types, ensuring you utilise all available reliefs and exemptions.
Strategic Planning
We work with you to plan asset disposals strategically, timing disposals and structuring ownership to minimise CGT liabilities.
Accurate Calculations
We ensure all CGT calculations are accurate and all reliefs are claimed correctly, reducing the risk of HMRC challenges.
Proactive Compliance
We ensure all CGT returns and disclosures are prepared accurately and submitted on time, maintaining full compliance with HMRC requirements.
Next Steps
Capital gains tax planning can significantly reduce your tax liabilities on asset disposals. Contact our CGT specialists to discuss your situation and discover how we can help you minimise CGT through strategic planning and relief optimisation.
Frequently Asked Questions
CGT rates depend on your income tax band and asset type. For residential property, rates are 18% (basic rate) or 28% (higher/additional rate). For other assets like shares, rates are 10% (basic rate) or 20% (higher/additional rate).
The annual CGT exemption is £6,000 for 2023/24, reducing to £3,000 for 2024/25. This allows tax-free gains up to this amount each tax year. Strategic planning can help utilise this exemption effectively.
Yes, capital losses can be offset against capital gains in the same tax year, and unused losses can be carried forward to future years. We can help identify and utilise losses effectively to reduce CGT liabilities.
PPR relief exempts gains on your main residence from CGT. The relief can apply to periods of absence and may include lettings relief in certain circumstances. We can help maximise PPR relief on property disposals.
Strategies include utilising PPR relief, annual exemptions, capital losses, strategic timing of disposals, and transferring assets between spouses. We can develop a comprehensive CGT planning strategy tailored to your circumstances.
Next steps
Minimise your capital gains tax liabilities through strategic planning and relief optimisation. Our CGT specialists can assess your situation and develop a comprehensive tax planning strategy.