How Can an Accountant Help Me Plan Ahead for Capital Gains Tax

Capital Gains Tax can feel straightforward at first, but once you add multiple assets, timing decisions, allowances, losses and different tax bands, it becomes more complicated than most people expect. Planning ahead is essential because the actions you take before selling an asset have a bigger impact on the final tax bill than anything you do afterwards. An accountant helps you navigate the rules and use them to your advantage.

This article breaks down the key areas where an accountant can help you plan ahead for Capital Gains Tax and why this can save you both tax and stress.

Understanding What Counts as a Capital Gain

Before planning begins, an accountant helps you understand which events trigger Capital Gains Tax. Gains apply when you sell or dispose of:

• property that is not your main residence

• second homes

• rental properties

• shares

• crypto

• business assets

• valuable personal belongings

• assets you gift to someone else

Many people unknowingly trigger a gain without realising it, so understanding the rules early makes planning much easier.

1. An Accountant Helps You Time the Sale to Reduce Tax

One of the most powerful ways to reduce Capital Gains Tax is to sell an asset at the right time.

How timing affects your tax

• Capital Gains Tax is based on the tax year you make the gain

• you get one annual exemption each year

• your income level affects the CGT rate you pay

• selling before or after 6 April can make a big difference

An accountant can calculate your expected tax bands and tell you whether selling in this tax year or the next will produce the lower bill.

In my opinion

This is one of the simplest but most valuable pieces of planning. A change of just one week can save thousands.

2. Making Sure You Use Your Annual CGT Allowance

Every individual gets a tax free annual Capital Gains Tax exemption.

An accountant will:

• make sure you use the allowance

• split gains between tax years where possible

• advise whether you should transfer or share assets with your spouse or civil partner

• structure disposals to minimise wasted allowance

Most people do not use their CGT allowance every year, but with planning you can make sure it is never wasted.

3. Reviewing Whether You Can Use Spousal Transfers

Transfers between spouses and civil partners are normally free of Capital Gains Tax. An accountant can advise whether:

• transferring part of an asset

• owning an asset jointly

• gifting before sale

could lower the tax bill. This works because each partner gets their own CGT allowance and their own tax bands.

Example

You own a rental property. Your spouse has spare basic rate tax band available. Transferring a share before the sale can reduce CGT dramatically.

In my opinion

This is one of the most effective and least utilised CGT planning tools.

4. Ensuring You Record and Use Capital Losses

If you have made losses on other assets you can use these to offset gains.

An accountant helps you:

• identify allowable losses

• record them correctly

• claim them within deadlines

• use old losses carried forward

Losses can be used to reduce your current year gain, sometimes reducing the tax to zero.

5. Helping You Understand the Different Tax Rates

Capital Gains Tax is charged differently depending on the asset and your income level.

An accountant helps you understand:

• which rate applies

• how your income affects your CGT

• how pension contributions and gift aid reduce your tax bands

• how combining CGT planning with income tax planning can reduce overall liability

For example, making a pension contribution can reduce your income for CGT purposes and move some of your gain into a lower rate. Many people never realise this.

6. Advising on Property Specific Reliefs

Property is where most people pay high levels of CGT, especially landlords.

An accountant can advise on:

• Private Residence Relief

• periods of deemed occupation

• letting relief (in limited circumstances)

• how improvements, selling costs and purchase costs reduce your taxable gain

• how to evidence any improvement works

• how splitting ownership affects gains

In my opinion property CGT is an area where small mistakes cost the most. Having an accountant check the calculation protects you.

7. Calculating Your Gain Correctly

Most errors HMRC sees are caused by incorrect calculations. An accountant helps you calculate correctly by including:

• the original purchase price

• stamp duty paid

• legal and agent fees

• cost of improvement work

• selling fees

• any allowable losses

• any reliefs

This ensures the gain is accurate and no deductions are missed.

8. Advising on Business Assets and Reliefs

If you run a business, CGT planning becomes even more valuable.

An accountant can advise on:

• Business Asset Disposal Relief

• eligibility rules

• ownership periods

• share structures

• selling part of a business

• disposals on retirement

Without specialist advice many business owners miss out on lower CGT rates.

9. Telling You Whether to Sell Part or All of an Asset

Sometimes selling in stages across tax years is more efficient than selling everything at once.

An accountant can calculate:

• whether to sell 50 percent now and 50 percent after 6 April

• whether splitting a share sale reduces CGT

• whether drip feeding disposals protects allowances

This strategy is especially useful for shares and crypto.

10. Helping You File CGT Returns on Time

Some Capital Gains Tax events require reporting within 60 days, especially property sales.

An accountant makes sure you:

• meet the 60 day reporting deadline

• pay CGT on time

• avoid penalties

• file accurately through your Self Assessment

Missing the 60 day window leads to automatic penalties, so accountant support is crucial.

11. Helping You Reduce Future CGT Bills

A good accountant does more than calculate your tax. They help you plan long term by advising:

• how to structure ownership of future assets

• how to use pensions and gift aid strategically

• how to manage investments tax efficiently

• how to use ISAs to avoid future gains

• whether incorporating a business is beneficial

• whether you should hold or sell an asset sooner

In my opinion this long term guidance is the biggest advantage of working with an accountant.

12. Peace of Mind and Avoiding Mistakes

CGT rules change regularly. Professional guidance helps you avoid:

• missing deadlines

• overpaying tax

• misreporting a disposal

• losing reliefs

• paying higher rates than necessary

Having an accountant means your calculation is correct, your planning is clear and your tax bill is as low as legally possible.

Real World Examples

Example 1: Reducing a gain with pension planning

A self employed client plans to sell shares for a large gain. Their accountant advises a pension contribution to reduce their income and push more of the gain into the lower CGT band.

Example 2: Using two tax years

A landlord sells half of a property in March and the other half after 6 April. Their accountant ensures both years’ CGT allowances are used.

Example 3: Spouse transfers

A couple own rental property in one name. Their accountant advises transferring a share to the other spouse to use both allowances and lower bands.

Example 4: Correcting missed costs

A client forgot to include £18,000 of improvement works. Their accountant recalculates the gain correctly and saves thousands in CGT.

In My Opinion: Why an Accountant Makes the Biggest Difference Before the Sale

In my opinion speaking to an accountant before you sell the asset is worth far more than speaking to one after. You cannot change the past, but you can always influence the timing, structure and reliefs available before signing contracts.

Many people wait until it is too late. Early advice often produces the largest savings.

Conclusion

An accountant helps you plan ahead for Capital Gains Tax by advising on timing, allowances, losses, tax bands, spousal transfers, business reliefs and property rules. They calculate your gain correctly, help file returns on time and give long term guidance to minimise future tax bills. In my opinion CGT planning is one of the most valuable areas where professional advice pays for itself many times over.