Capital Gains Tax Return Specialist
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GM Professional Accountants give advice and provide service on Capital Gains Tax Return. Capital gains tax is essentially the tax payable when you make profit from selling an underlying asset such as shares, property or business. Tax liability on a sale made is normally subject to a number of factors such as the income earned and the type of asset involved. The UK budget of 2016 included a number of reforms that determine the capital gains tax of an individual based on their income. For example, taxpayers that receive minimum income rates are liable to a CGT of 10% while those who get better income rates pay a CGT of 20%. However, the rates change when it comes to property sales. GM professional provide expert advice on properties and letting relief on our helpline on 0208 396 6128.
Capital gains tax on Shares
Share transactions forms the basis of the capital gains tax. Investment experts buy and sell shares speculatively based on an underlying intelligence of the market trends. It is important to note that you could either make a profit or a loss in the share business. To bring things into perspective, you can buy shares of a quoted company for a given price and then sell it at a higher price in the future. The difference between the selling and the buying price is effectively subject to a capital gains tax.
Capital gains tax on property
The prices of properties are normally volatile with the passage of time. Some people participate exclusively in the business of buying and selling properties for the sake of making profits. The income received from the sale is subject to the capital gains tax after the necessary deductions are made such as legal fees and agent fees. Nonetheless, it is important to note that the returns made from selling a first home is not subject to any form of tax
Capital gains tax on business/ investment
You may plan to sell your business after it has gained some value. The proceeds made from the sale is also liable to the CGT. However, in case you retain a stake of 5% or more in the business, you will be given a reprieve of 10% of the total tax. Allowances on the CGT The government of the UK has provided an incentive that encourages taxpayers to pay any capital gains tax due through the annual tax exemption. For example, the financial year 2016/2017 has a tax exemption of 11,100 pounds. It basically means that the total tax paid in the year in the form of the capital gains tax is deducted a constant value of 11,100 pounds. The allowances for a given year cannot be forwarded to the next financial year in the event that it is unused. Filing tax returns annually will ensure that any CGT deductions made will be recorded by the tax authority and consequently, any government helpline usually guide citizens on how to file tax returns. Tax accountants normally provide an expert’s point of view on the technicalities related to tax returns and they will provide invaluable advice on how to comply with the tax authority. Generally speaking, if you intend to be a tax compliant citizen, then you have to uphold all the laws set forth in relation to the capital gains tax. We have been providing excellent services to our current clients in Ilford , barking, Romford and East ham