Services for Individuals

Capital Gains Tax is the tax levied on anyone who makes a gain on disposing of items of significant value. This is an issue which needs to be considered when preparing your personal tax return.

Every-day items are generally excluded and there are certain reliefs, thresholds and annual allowances so that only significant transactions are included.

Everyone needs to remember that all gains have to be disclosed to their Accountant in case tax is applicable. It is better to talk about anything you have sold when you provide your paperwork, and then we can advise you on whether or not the amount is relevant.

The most common examples of assets that can trigger a charge to Capital Gains Tax are properties, shares and businesses, all of which can often produce big gains.

If you sold a property in the UK on or after 6 April 2020, you must report and pay any tax due on UK residential property within 30 days of selling

The allowances and reliefs that can be claimed have changed over the years and so it can often help to seek advice before disposing of an asset as the timing can be critical. Tax planning is always beneficial, but it means remembering to talk things through with us before the sale takes place.

It may be the case that if a transaction can be “managed”, or spread over time, there is the potential to minimise, or even eliminate the tax burden.

Inheritance Tax is the tax applicable to people’s wealth when they die.

It can include some wealth distributed prior to death, especially in the seven years preceding death.

The terms on which this tax is based can mean that any significant gift or transfer of wealth (in almost any form) at any stage in a person’s life may need to be examined.

Some transfers of wealth can be clawed back into an estate, and taxed, however long ago they were arranged.

You are likely to have heard people talking about avoiding inheritance tax, and this is an area that everyone should consider.

Generally, it is always sensible to seek advice and monitor major transactions as almost all Inheritance Tax can be prevented by careful estate management.

Property can trigger various taxes at various times.

Buying and selling property almost always causes tax implications, but if properly managed tax can be prevented or minimised.

Letting/renting out property can create a charge to income tax, so the right records need to be kept and the right income declared but the relevant expenses can be claimed. It is important to understand that there are different tax treatments for the payments of different types of mortgages. “Can I offset my mortgage interest against my rental income?” is a common question but you will need to come and talk to us to get a detailed answer to this as there are new rules and restrictions on residential finance costs.

Other taxes, like Stamp Duty Land Tax, can apply to property transactions. All of these issues relate to personal tax returns.

Property usually forms a large part of an individual’s estate at death and so can have a huge impact on Inheritance Tax.

We want to help you keep down property taxes, so if you want to know more or talk about your specific situation, call us and we will talk it through with you.