Capital Gains & Inheritance Tax
The key to capital gains and inheritance tax accounting is knowing all the details and setting in motion a plan to balance the available reliefs and taxes. To do this you often need expert advice from an inheritance tax accountant or an accountant specialising in capital gain tax.
At Warr & Co we have a team of highly experienced accountants with their finger on the pulse of taxes and reliefs, to ensure our clients minimise tax exposure and maximise their tax efficiency. This is an extremely important part of the work we do – we’re here to help you make the most of your money.
Our experience and advice will help you manage your money better, whether you’re just starting out with tax planning or if you’re thinking to the future and need assistance with estate planning or trusts.
Submit the enquiry form and we’ll have a member of our team contact you to explain how we can help in plain English. There’s no obligation to commit and we won’t charge you for this initial consultation.
Working With An Inheritance Tax Accountant
at Warr & Co Chartered Accountants
Capital Gains Tax & Inheritance Tax
So many factors influence your wider tax picture. We’ve listed a few factors here, but every person’s situation will be unique. There’s no ‘one-size-fits-all’ at Warr & Co, so book your consultation and get access to a professionally tailored solution with our help.
Capital Gains Tax is the tax that is due on an asset when it is sold if it has appreciated in value. There are exemptions, see the information in the blue box.
For the most part, the average person will be subject to capital gains tax when they sell a property which is not their main residence, or when passing on money to loved ones in a trust, as examples. Businesses are also subject to Capital Gains Tax.
A tax-free exemption does apply, but it’s only £11,700 (Dec 2018) at the moment, so if your assets have appreciated significantly, you may still be exposed to Capital Gains Tax.
The rate of Capital Gains Tax can also be slightly complicated, as there are different rates for higher tax payers and also different rates for property or non-property Capital Gains Tax. The rates range from 10% to 28%.
You Don’t Pay Capital Gains Tax If…
- You’re selling your main residential property
- You’re selling a car
- Your possession is worth less than £6,000
- You’re gifting money to a spouse or civil partner, or a charity
- The gain is within your tax-free allowance
Inheritance Tax becomes applicable when someone dies leaving an estate (property, savings, possessions) of £325,000 or more to be passed on to loved ones. The Inheritance Tax is applied at 40% of anything over the £325,000.
Yes, 40% is an amazingly high percentage of your money that will not be passed on to the people you intend. This is why it’s so important to plan for Inheritance Tax and ensure your hard-earned savings can be passed on in a tax-efficient manner.
As with all types of tax there are exemptions and exclusions, so it’s important to discuss your unique situation with your accountant and set out a plan to reduce your Inheritance Tax exposure.
Inheritance Tax Exposure Can Be Reduced By…
- Careful tax planning
- Setting up a trust
- Gifting some money to charity in your will
- Making money gifts to loved ones while you’re still alive