Like other types of taxes in the UK, the capital gain tax law is complicated, and you can only navigate it with expertise in that field. This feature can be attributed to factors like tax calculations based on an asset’s sale price and cost. Vary tax rates and exemptions are the other factors that complicate it. Unfortunately, breaking the capital gain tax law and regulations attracts penalties. You can avoid these misfortunes by hiring tax advice accounts from reputable firms like Allen & Atherton, which you can access at this link https://allenandatherton.com/tax-advice/capital-gains. Doing so comes with the following benefits:
Better investment decision
The advisors will work with you to determine your financial goals and advise you to make better investment decisions. For example, the professionals advise you on the best time to sell your assets for a better return. In most cases, they consider factors such as market conditions which are best to sell when the asset is performing at its best. They can also consider your tax bracket because the UK capital gain tax rates are based on your income. With this factor, you should sell the asset early for higher returns.
Minimum tax liabilities
You will have minimum tax liabilities when you hire a reputable tax advice accountant because they have the best strategy to achieve this. Depending on your financial goals, the professional can advise you to use the tax laws’ exemptions like Annual Exempt Amount. They can also advise you to time the asset’s sale to coincide with a lower earning period, lowering your capital gains tax liability. Furthermore, they can advise you to invest in EIS, which is tax-efficient and can help you maximize your benefits.
Tax laws compliance
Because of the complicated laws and tight deadlines, you will likely need more time to handle the tax individually. Working with a tax advisor will save you since they will help you understand the tax laws and their implications. Most importantly, they can help you report and file the taxes accurately and on time. The experts are better placed to engage in this process because they are updated on the tax laws and dedicate their time to giving you the best advice.
Access to resources
As an individual, you can only have some of the tools for calculating and accurately filling the tax. The same applies to businesses, where buying such tools can be an additional cost. You or your business will have access to professional tools like planning software and tax calculators, which the tax advisors use to handle this task. With the tools, you can make the right investment decisions within the legal bounds. In addition, you will get the latest developments in tax laws, which can guide you when deciding when and how to sell your assets.
Despite the complicated UK capital gain tax, missing the filing deadline has a fixed penalty of £100 per return. Missing the deadline by three months has a daily penalty of £10 up to 30 days and is capped at £900. Six to 12 months attract a 5% penalty on the tax due or £300 if greater. Deliberating concealing has a penalty ranging between 70% to 100% of the tax due. However, you can avoid these penalties and get other benefits you have read about here. Clicking on this site allenandatherton.com/tax-advice/capital-gains will expose you to how to hire the right tax advisor. This firm is ideal for hiring due to its five branches worldwide, with each branch boasting over 200 experienced professionals ready to serve you.