Capital Gains Tax (CGT)
Capital gains tax is the amount of tax individuals or companies pay when they sell, exchange, gift or transfer an asset they own. Capital gains tax may also be due when you receive compensation for an asset that has been destroyed such insurance payments. Assets include shares or properties however, some assets are not liable to CGT.
Assets such as property rented out, a second home, business premises or land are liable to CGT when you dispose of them. There is an annual tax free allowance known as annual exemption of £10,100 for individuals for the year 2010/11 and £10,600 for the year 2011/12.
The tax rate for CGT are as follows:
- 18 per cent and 28 per cent for individuals (the tax rate you use depends on the total amount of your taxable income and gains)
- 28 per cent for trustees or personal representatives
- 10 per cent for gains qualifying for Entrepreneurs’ Relief
- You may need advise on how best to dispose your asset so that you pay the least possible CGT
- You may need advise on disposal of business assets
- You may need advise on availability of relief applicable to your situation
- We will assist you with tax planning to ensure that you pay least tax
- We will ensure make efficient use of your tax planning opportunities by claiming all the allowances available.