Capital gains tax
Capital gains tax is the tax you pay when you dispose of an asset that has increased in value.
There are various ways to dispose of an asset, for example you may:
- Sell the asset
- Give it away
- Swap it for something else
- Get some compensation for it e.g. insurance for something lost or stolen
It is the gain you make that is taxed and not the price you get when you dispose of it.
You pay capital gains tax on the gain you make on:
- Personal possessions worth £6,000 or more apart from your car
- Property other than your main home (although in certain circumstances you have to pay tax on the sale of your main home)
- Shares if not in an ISA or PEP
- Business assets
You do, however, have an annual allowance and you only have to pay capital gains tax on any gains over and above this allowance.
The rate at which you pay capital gains tax changes depending on your own personal circumstances and the type of asset you have disposed of.
It is important to know that you have treated any gains correctly in your tax return so we would recommend getting advice on this – we would be happy to help.
If you would like to chat about this or anything else, why not get in touch?
I work with Val and beyond the Numbers, because they are exactly that..more than just the numbers. They work hard to understand my business, understand the business needs that are unique to me. They then shape the support and service around those needs.
What I particularly like is that they are up for doing all sorts of support, from basic book-keeping, through to strategic challenge and insight. Trusted partners.
Martin Ewart, Bigwheel Leadership Ltd
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