Do you find yourself switching off when your Accountant starts talking about inheritance and capital gains tax?

Avanti Accountants aim to speak with our clients in plain English, ensuring that when it comes to your accounts you’re switched on.

This week we are asking, what is  capital gains tax ?

This is tax which may be payable on a disposal (for example, when you sell an asset) if you make a chargeable gain. Usually you have made a gain if the asset is worth more at disposal than it was when you acquired it. A disposal is not only a sale for money’s worth. You will only pay Capital Gains Tax on capital monies (monies that you received) that do not form part of your income. The tax applies not to the value of the asset but to the increase in value.