3 Smart Ways To Reduce Your Capital Gains Tax Bill

If you think of disposing or selling your assets to earn a profit, you must understand that the process is more complex. There are some government rules and regulations which you need to follow. Capital Gains Tax applies to such transactions, including property, shares, jewellery, painting, investment funds, etc.

You need to understand that CGT will be applicable only if you exceed or surpass the tax-free allowance, equal to £12,300 per year. Every UK citizen is entitled to an annual CGT allowance. It is not going to change until April 2026. Apart from this, your home income will determine the rate which will be applied to your personal Capital Gains Tax (CGT). In case you are an additional taxpayer, you will get an increased CGT rate of 28 per cent on profits made on domestic assets and 20 per cent on profits made on other chargeable assets.

Tips To Reduce Your Capital Gains Tax Bill
Capital Gains Tax (CGT) is unavoidable, but this doesn’t mean it can’t be reduced. Hence, if you want to save your capital, apply the tips below to reduce your CGT bill.

  • CGT Allowance: As mentioned above, each UK citizen has a Capital Gains Tax allowance renewed annually. So if you successfully keep the gains you make from your assets lower the cap, then CGT won’t apply. Remember that you cannot carry the allowance to the following year. If you need help using the allowance, you can approach professionals specialising in offering the best capital gains tax assistance.
  • Manage Income Levels: Many people need the idea that their income tax rate can significantly impact the amount of Capital Gains Tax they are liable to pay. But you don’t have to worry, as you can quickly reduce your taxable income by making pre-tax deposits into your pension, donating, planning for your retirement, etc.
  • Transfer Assets: Transferring your assets is a simple and intelligent way to help you increase your CGT tax allowance and avoid paying unwanted costs to annual gains. You can quickly transfer your asset to your family member or a trusted partner.

The other things you can do to reduce Capital Gains Tax (CGT) are spread gains, deduct costs and offset losses, make investments, etc.

So if you are looking for experts who can help you and offer the best capital gains tax assistance, then AccountableUK is your destination. Our professionals will closely work with you and offer the best advice so that you can quickly meet your tax obligations. To book an appointment with our professionals, call us at 02380 576807 / 07957 461339. You can also send an email to kamal@accountableuk.com for further queries. You can trust us to offer you quality service at an affordable price.