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Business Capital Gains Tax Services
Understanding Business Capital Gains Tax
Our expert tax accountants provide tailored guidance on Business Capital Gains Tax, ensuring you maximise available reliefs and minimise liabilities. We simplify the process, reduce stress, and help you stay compliant with confidence.
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Navigating HMRC Rules on Business CGT
Understanding HMRC rules on Business Capital Gains Tax (CGT) can be complicated. Our tax consultants assist individuals and businesses in meeting their obligations, applying reliefs, and structuring transactions correctly. This method aims to solve issues cost-effectively, reducing liabilities while saving time and resources. We make CGT compliance straightforward, accessible, and less stressful for business owners, entrepreneurs, and investors alike.
CGT and Inheritance Tax Planning Together
Planning for Capital Gains Tax (CGT) and Inheritance Tax (IHT) is crucial for protecting your wealth and ensuring you pay less tax over generations. Our tax advisors help individuals and businesses manage the sale of assets, making gifts, and handling estates in accordance with HMRC rules. This combined approach effectively addresses possible tax liabilities while being mindful of costs. It helps preserve family wealth and saves time and resources. Planning for CGT and IHT together offers clarity, compliance, and peace of mind.
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We are a team of specialist tax advisors who are delivering expert guidance on tax compliance, international tax, HMRC investigations, business structuring, capital gains, inheritance tax, corporation tax and self assessment services.
We know personal taxes can be overwhelming. With us, your returns are accurate, on time, and tailored to your unique life.
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What is Business Capital Gains Tax (CGT) and how does it affect me?
Business Capital Gains Tax (CGT) is a tax you pay when you sell or dispose of a business asset, such as property, land, shares, or even goodwill. The “gain” is the profit you make—the difference between what you paid for it and what you sold it for.
For example, if you bought a business property for £200,000 and later sold it for £350,000, your gain is £150,000. That gain is subject to CGT. However, HMRC rules include allowances, exemptions, and reliefs that can significantly reduce the bill—if you plan.
At Tax Accountant, we specialise in navigating these complex rules. Our Business Capital Gains Tax services ensure you understand what qualifies as a gain, what expenses can be deducted, and how reliefs like Business Asset Disposal Relief can reduce your liability to just 10%.
CGT doesn’t exist in isolation—it interacts with Income Tax and VAT. For example, if you operate as a sole trader, gains can push you into a higher Income Tax band. Selling a VAT-registered property may also trigger VAT considerations. Without professional guidance, it’s easy to overlook these connections.
We simplify everything by breaking down HMRC rules into clear, step-by-step instructions. You’ll know exactly what to report, when to pay, and how to save.
How can I reduce my Business Capital Gains Tax liability legally?
There are several legal ways to reduce your CGT bill. At Tax Accountant, we help you structure transactions and use reliefs to your advantage. Here are the most common strategies:
- Business Asset Disposal Relief (BADR): Formerly Entrepreneurs’ Relief, this reduces CGT to 10% on qualifying gains, up to £1 million.
- Incorporation Relief: If you transfer your sole trader business to a company, you may be able to defer CGT.
- Rollover Relief: Selling a business asset and reinvesting in another? CGT can be deferred until you dispose of the replacement asset.
- Gift Hold-Over Relief: Transferring business assets to someone else? The gain may be deferred until they sell it.
Timing matters too. Selling just before a tax year ends could push you into a higher tax band, whereas careful planning may reduce overall liability.
We also integrate Income Tax and VAT planning into CGT strategies. For example, selling an asset at the wrong time might not only trigger CGT but also higher Income Tax. Similarly, VAT rules may apply to the disposal of commercial property.
Many business owners miss out on these reliefs simply because they didn’t get advice early enough. That’s where we step in. At Tax Accountant, our experienced consultants ensure you pay no more CGT than necessary. We work with you to structure sales, claim reliefs, and protect your profits.
Do I need to pay CGT when selling business property?
Selling a business property usually triggers CGT if you make a profit. But how much you pay depends on planning, timing, and reliefs.
For example, say you purchased a shop for £300,000 and later sold it for £500,000. That’s a £200,000 gain. Depending on your circumstances, you could be taxed at 10% (with BADR) or up to 20% without it.
It’s not just CGT that you need to consider. Selling property may also involve VAT. Some commercial properties are VAT-registered, meaning VAT could be charged on the sale unless relief applies. This complicates the transaction and can affect cash flow.
Our role as a Tax Accountant is to simplify this. We calculate your exact liability, identify which reliefs you qualify for, and ensure your property disposal is as tax-efficient as possible. For example, we might use Rollover Relief if you’re reinvesting proceeds into another property, delaying CGT until the next sale. We also integrate your Income Tax position, ensuring the gain doesn’t push you into a higher bracket unnecessarily.
Selling property is a major financial step. Without planning, you could end up with a larger tax bill than necessary. With Tax Accountant, you’ll have experts ensuring your property sale is compliant, efficient, and profitable.
How does Capital Gains Tax apply to selling company shares?
Selling shares in your business can also trigger CGT. This often happens when business owners exit, attract new investors, or restructure ownership.
For example, if you bought shares in your company for £50,000 and later sold them for £200,000, your gain is £150,000. Without planning, HMRC could tax that gain at a rate of up to 20%.
The good news is there are reliefs. Business Asset Disposal Relief may reduce your tax to 10%, provided conditions are met (like owning the shares for at least 2 years and being an employee or officer of the company). CGT on shares also interacts with Income Tax. For instance, dividends and salaries may influence your tax position in the year of disposal. Our planning takes into account the entire picture so that you won’t face any surprises.
We also help with gift or inheritance planning. Passing shares to family members could qualify for hold-over relief or other exemptions, deferring CGT until a future sale. At Tax Accountant, we’ve helped countless owners plan their exit strategies in the most tax-efficient way. Whether you’re selling part of your business or transferring ownership, we make sure HMRC rules work for you—not against you. Work with Tax Accountant to structure share sales smartly, reduce liabilities, and protect your wealth.
What role does timing play in Business Capital Gains Tax?
Timing can make a significant difference in the amount of CGT you pay. Selling at the wrong time could increase your bill unnecessarily.
For instance, gains are added to your overall income for the year. If your other income is high, you could end up in the higher CGT band (20%). Selling in a different tax year could reduce the liability.
At Tax Accountant, we help you plan disposals strategically. For example, staggering the sale of multiple assets across different tax years can keep you in a lower tax bracket. Similarly, selling before year-end may align with your cash flow needs while also securing reliefs.
We also factor in VAT and Income Tax. Selling assets may create VAT issues or increase your total taxable income, so timing decisions must consider all three taxes together. A classic example: a business owner planned to sell property in March, which would have pushed them into a higher tax band. By delaying until April (the start of a new tax year), we significantly reduced their CGT. Tax isn’t just about rules—it’s about strategy.
How do CGT and Inheritance Tax (IHT) planning work together?
CGT and IHT often overlap when transferring business assets to family or planning succession. Without careful planning, your estate could face both taxes.
For example, gifting assets during your lifetime may trigger CGT, while leaving them in your estate could create IHT charges at 40%. At Tax Accountant, we create integrated CGT and IHT strategies. These may include:
- Gift Hold-Over Relief to defer CGT on asset transfers.
- Business Property Relief to reduce IHT on qualifying business assets.
- Timing strategies that reduce exposure to both taxes.
By planning together, we protect wealth across generations. For instance, transferring shares to children may defer CGT until they sell, while also qualifying for IHT relief if structured properly. This isn’t just about saving money—it’s about safeguarding your legacy.
Can CGT services help with business exit strategies?
If you’re selling your business, planning for succession, or retiring, CGT plays a central role. Without planning, you could lose a large portion of your exit proceeds to tax.
At Tax Accountant, we design exit strategies that maximise your net returns. This may involve:
- Claiming Business Asset Disposal Relief for a 10% CGT rate.
- Using Rollover Relief if reinvesting in new ventures.
- Coordinating with IHT planning for family succession.
We also integrate your Income Tax position. Selling shares or property may push you into higher bands unless managed carefully. Exit strategies are about more than numbers. They’re about rewarding your years of hard work and protecting your financial future.
How do VAT rules interact with Business Capital Gains Tax?
Many business owners overlook VAT when planning disposals. But VAT can significantly impact CGT transactions.
For example, selling a commercial property may be subject to VAT unless certain exemptions apply. If ignored, this can impact both the buyer’s and seller’s cash flows. At Tax Accountant, we ensure VAT is factored into every CGT scenario. We check whether the property is opted to tax, whether a Transfer of a Going Concern (TOGC) applies, and how VAT interacts with CGT reliefs.
This matters because VAT isn’t recoverable in all cases. Failing to plan effectively can result in higher costs and lower profits. By integrating VAT into CGT planning, we provide you with a comprehensive view. No surprises, no unnecessary losses.
What mistakes do business owners make with CGT?
The biggest mistakes are:
- Not seeking advice early enough.
- Missing out on reliefs like BADR.
- Ignoring VAT on disposals.
- Failing to plan timing strategically.
- Overlooking how CGT interacts with Income Tax and IHT.
For example, one client nearly paid 20% CGT instead of 10% because they didn’t realise they qualified for BADR. Another faced cash flow issues because VAT wasn’t planned during a property sale. At Tax Accountant, we prevent these mistakes. We review your situation holistically, spotting risks and opportunities before you act.
Why choose Tax Accountant for Business Capital Gains Tax services?
Because CGT is complex—and the stakes are high. At Tax Accountant, we combine deep knowledge of HMRC rules with practical business experience.
We don’t just calculate tax; we create strategies. Whether you’re selling property, shares, or planning succession, we ensure your plan is compliant, efficient, and profitable.
Our clients trust us because we offer:
- Expert tax accountants with years of experience.
- Integrated planning across Income Tax, VAT, and CGT.
- Clear communication—no jargon, just actionable advice.
- Proven results, from funding to exits.