Think of it this way: if you bought something like a second property, some shares, or even cryptocurrency and later sold it for more than you paid, the profit you made (the “gain”) is what HMRC wants to know about, and they want to tax it too.
It doesn’t matter whether you pocketed the cash or reinvested it. If there was a gain, there may be a tax bill, and depending on what you sold, when you sold it, and how much you made, the rules can get tricky fast.
The deadline you really don’t want to miss
If you sell a UK residential property and CGT is due, you have just 60 days from completion to report it and pay up.
If you miss that window, HMRC will start charging late-filing penalties, plus interest.
For other types of gains, like shares or crypto, you’ll usually report them through your Self-Assessment return.
The most common errors we see
You’d be surprised how often people get tripped up. Some think gifting a property to their children means no CGT (not true). Others assume crypto profits are too complicated to track (HMRC disagrees). And many are shocked to learn that just selling a holiday home overseas could trigger a reportable gain, even if they didn’t make that much money from it.
Then there’s the maths. Working out your gain isn’t always as simple as sale price minus purchase price. What about refurbishment costs? Legal fees? Inherited values? Different types of relief? The rules are full of “ifs,” “buts,” and “maybes” and that’s where we come in.
So, how can we help?
In short: we take the stress off you. You tell us what you sold, we look at the numbers, make sure you’re claiming everything you’re entitled to, and file the report accurately and on time.
No panic. No surprises. No “uh-oh” moments further down the line.
Whether you’ve sold a rental property, hit the jackpot on crypto, or you’re just not sure whether CGT applies to your situation we’ll talk it through with you, ,making the complex simple’.
Next Steps
The best time to speak ETC about Capital Gains Tax is before you sell. But if the clock is already ticking on a recent sale, don’t panic, as we can help you get it sorted quickly and correctly. Get in touch and we will help you out!
When it comes to planning for the future, one question we hear time and again is:
“Should I put my assets into a trust?”
It’s a great question and a surprisingly common one, especially as families become more aware of inheritance tax (IHT) and the need to protect their wealth for future generations. Trusts have long been a feature of estate planning for the wealthy, but they’re no longer just being used by the ‘super rich’. Today, they’re being used by families of all sizes who want to manage their assets more thoughtfully and more tax-efficiently.
But as with most things in tax, it’s not a simple yes or no.
What exactly is a trust and why do people use them?
Imagine you’ve worked hard to build up a nest egg, perhaps a family home, some savings, maybe a portfolio of investments. Now imagine you want to pass that wealth on, in your own time. While there are many options, a trust can be a popular one.
A trust is like a protective wrapper around your assets which allows you to:
Place specified assets into trust;
Appoint trustees to look after those assets;
Decide who should ultimately benefit from those assets (whether its your children, grandchildren or someone else entirely)
In doing so, it creates a structure which separates beneficial and legal ownership, giving you control over how and when your wealth is passed on.
On top of this, trusts can also help to reduce inheritance tax. For example, certain types of trusts allow you to move assets out of your estate, meaning they’re no longer counted when HMRC calculates the IHT bill on your death. If you survive for seven years after the transfer, those assets may fall completely outside your estate, potentially saving your family thousands (or more) in tax.
Many people also use them to protect young or vulnerable beneficiaries, particularly where an outright inheritance might not be wise. Others use them to keep assets in the family, especially in situations involving divorce, remarriage, or business risk. Some simply want peace of mind, knowing their legacy will be handled responsibly, even after they’re gone.
So, is it the right move?
It depends and this is where things get interesting.
Transferring assets into a trust can be incredibly valuable, but it isn’t always straightforward. For one thing, the transfer itself can come with tax consequences. You might trigger an immediate charge to inheritance tax if you put too much into a trust at once. There may be capital gains tax implications too, if appropriate reliefs aren’t considered.
Additionally, a trust should never be set up for your own benefit, as this can have adverse tax consequences.
Then there’s the trust itself. It’s not a ‘set it up and forget about it’ arrangement. Trustees have legal duties, tax reporting obligations, and the responsibility of managing the trust’s assets in line with your wishes. Certain trusts also face their own ongoing tax regime including charges every ten years, and when assets are taken out.
That’s not to say any of this is a deal-breaker. Far from it. But it does mean you need to go into it with your eyes open, and ideally, with professional guidance.
The right strategy starts with the right advice
Trusts are not about hiding money or avoiding tax. They’re about planning sensibly, thinking ahead, structuring your wealth in a way that reflects your values, and making sure your family is looked after when you’re no longer here to do it yourself.
If you’re worried about inheritance tax, concerned about passing money to the next generation too soon, or simply want more control over what happens to your assets, then a trust might be worth exploring. But it’s not the kind of thing you want to Google your way through.
Next Steps
At ETC, we help clients understand whether a trust is the right fit for their estate and if it is, we make sure it’s set up properly, tax-efficiently, and with a clear long-term plan in place.
Every family is different. Every estate is different. And every trust should be tailored to match.
If you want to discuss whether a trust is right for you, do not hesitate to get in touch.
Case of the month – Succession Planning for a Family-Owned Business
Introduction
Our clients, a married couple in their late 60s, wished to start passing ownership of their successful family business to their children during their lifetimes to avoid potential disputes after their deaths.
While they were happy to hand over control, they wanted to retain some influence to help guide the company when needed. Their priority was ensuring the process was completed in the most tax-efficient way possible.
The Issue
The clients were concerned that, even with clear wills, future disputes over ownership could arise. They wanted to transfer ownership to their children now while maintaining a role to support the business where appropriate.
Additionally, the company wished to incentivise certain existing shareholders by enhancing their share rights.
How we solved it
We provided detailed advice on reorganising the company’s share capital. This involved a combination of share buybacks, gifts, and new share issues — all carefully structured to maximise available tax reliefs and minimise exposure to IHT, CGT, IT and CT.
We outlined a clear, step-by-step plan for implementation, worked closely with the clients’ solicitors, and advised on creating a Non-Executive Director (NED) role to preserve the clients’ influence where needed.
The outcome
The clients successfully transferred control to their children in a fully tax-efficient manner while retaining an appropriate NED role.
They gained complete clarity on the tax implications and confidence in the robustness of the structure. Key employees were also incentivised through enhanced share rights.
The project was delivered successfully, with close coordination between advisers to ensure all compliance and legal requirements were met.
