UK Capital Gains Tax Planning

Our tax planning experts are here to help

If you own capital assets such as company shares, an interest in a business, land, property portfolios, holiday properties or investment portfolios, we can provide advice on using allowances and rate bands to minimise CGT liabilities.

Our team of tax specialists have significant experience in advising clients on a variety of matters relating to CGT. If you are thinking of selling a capital asset, we can provide advice on how to do this in the most tax-efficient manner.

A combined approach

Combining guidance and support from Progeny’s Corporate Legal team, Private Legal team and Wealth Management team, we are able to provide truly holistic support.

Regulated by solicitors regulation authority

Progeny Law & Tax are authorised and regulated by the Solicitors’ Regulation Authority, meaning we are dedicated to upholding professional standards within the industry.

Over 40 years’ experience

We work hard to form excellent client relationships, understand their aspirations and give the quality service and bespoke structuring they require to address their complex needs.

Work with our experienced team

We have extensive experience and can support you with:

Selling shares

We can support you in selling shares in family companies to utilise Business Asset Disposal Relief, including transferring shares pre-sale to trusts or other family members. The tax team work closely with our Corporate Law team who will advise on the transaction and the legal documents. In addition, our Private Law team will assist with the drafting of trusts as part of the pre-sale planning and amending Wills as your circumstances change.

Selling land and property

If you are looking to sell land, whether it be an investment property, a holiday home or for development purposes, our team of experts are here to help. We can also deal with the conveyancing of the land and property.

Maximising reliefs

Our team advise on the sale of shares, land and property and investment portfolios, and work to maximise the available reliefs. These can involve both planning prior to the sale and advising on post-sale reliefs.

Frequently Asked Questions

What is the Capital Gains Tax rate?

Depending on your Income Tax band, you will pay a minimum of 10% on your gains, and a minimum of 18% on residential property. This is after the annual exemption which is currently £3,000 per individual.

These tax rates can increase up to 20% on your gains, and 24% on residential property with 28% tax being payable on carried interests.

When does Capital Gains Tax apply?

Capital Gains Tax applies when you sell or dispose of most assets including

Personal possessions worth £6,000 or more (excluding vehicles)
Residential property that is not your primary residence
Your main home if it has been let out or used for business applications, shares you hold that are not part of an ISA or PEP, business assets

What is rollover relief?

Exclusively for business assets, rollover relief can be claimed when the profits from the sale of business assets are used wholly or in part to fund the purchase of new assets. This means that you would not be liable for CGT until the new asset or assets are sold for profit.

There are some conditions to this relief. You must buy the new assets within three years of selling the old ones (or up to 1 year before) and your business must be actively trading to be eligible.

Can my Capital Gains Tax Exemption be carried forward?

Your annual CGT exemption allowance can’t be carried forward so you should try and use as much as you can each year.

What is Business Asset Disposal Relief?

Previously known as Entrepreneurs Relief, or ER, allows the first £1 million of capital gain to be taxed at 10% when shares in trading companies or a business is sold.

What happens if I am a higher rate taxpayer?

If you are a higher rate taxpayer, you are likely to be more at risk of paying significant sums in CGT. While there have been reductions from rates of the past (as much as 40% in some cases) you may still face up to 28% CGT on profits from the assets you sell. Careful planning can help reduce your exposure.