Capital Gains Tax can be a source of dread for property owners, especially after the recent government increase in rates. But with the right help and advice from solicitors or accountants in Bristol, you can ensure you only pay the right amount of CGT liability.
Here’s what you need to know.
What is Capital Gains Tax and why does it matter?
Also abbreviated to CGT, Capital Gains Tax is most commonly associated with property sales, but it is levied on various asset sales, and paid against profits. The government raises billions of pounds every year through CGT, and it can result in large tax bills for individuals.
From 6th April 2023, you only needed to make £6,000 profit on a property sale before incurring a CGT bill. From 2024, this amount dropped to £3,000. This drop has impacted many property owners and investors.
What can you do to avoid a large Capital Gains Tax bill?
The best way to avoid a large Capital Gains Tax bill is to be prepared and seek specialist help. By consulting accountants Bristol such as www.chippendaleandclark.com/accountants-near-me/bristol, you can find out ways to minimise your CGT bill but within the law of HMRC.
For example, there are various exemptions you can factor into your Capital Gains Tax liability calculations. These include repairs, solicitor bills and mortgage costs. Your accountants in Bristol can also look at factors such as market valuations and your own tax situation to give you the best possible advice for your situation. For example, married couples can usually transfer properties to each other to benefit from CGT allowances.
How Accountants in Bristol can help to manage your tax
Accountants can help you to make the most of your tax allowances and only pay what you owe, rather than any more. Access to this type of specialist advice can help you to plan your next steps with confidence. This also helps you to organise your affairs and know that you are fully up to date with your tax liabilities.
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