This is a tax on the profit when you sell (or ‘dispose of’) something (an ‘asset’) that’s increased in value. It’s the gain you make that’s taxed, not the amount of money you receive.
An Asset can be classed as:-
(This includes shares, bonds and other securities (held outside a tax wrapper such as an ISA)
- Property in the UK that is not your main home eg holiday homes, buy-to-let properties
- Overseas property (if you are resident in the UK for tax purposes)
- Property you inherit
(The gain is counted as the difference between its value when you inherit it and when you sell)
(But if you own 5 per cent or more of the shares in the company you may qualify for entrepreneur’s relief, which cuts the CGT rate)
- Valuable personal possessions
(Items including jewellery, antiques, paintings, stamps and coins that are sold for more than the threshold attract CGT)
The rules and regulations around Capital Gains Tax is vast and that is why
Having the help from an accountant to complete your Capital Gains Tax supplement in the tax return can save you a lot of money with the experience and knowledge, especially with changing rules every year.
Disclaimer:- The information contained herein is given by way of general guidance only and no action should be taken solely on the basis of the information contained herein. The Avanti Group (UK) Ltd will be pleased to provide further guidance on the issues, and how they might affect you. No liability is accepted by the firm for any action taken without seeking appropriate professional advice.