Capital Gains Tax

Capital Gains Tax

What is capital gains tax?

Capital gains tax is tax on the profit or gain you make when selling or disposing of an asset.
This is the profit you make when it is no longer yours for example:

  • Selling it
  • Giving assets away as a gift
  • Transferring to another person
  • Exchanging it for something else
  • Compensation received insurance payouts when an asset has being destroyed.

It is not the full amount of money it is the amount of profit you make which is subject to capital gains tax.
Not all assets however are liable to capital gains tax when you sell or dispose of them. Some of the assets which are exempt from this are cars, personal possessions of less than £6,000 and usually your main home. However when it comes to inheritance or second properties they are subject to capital gains tax.

Capital gains tax in business

If you are in business or own shares in a business, you may be entitled to tax reliefs that can help reduce your tax bill. Capital Gains Tax is due when you sell give away, exchange or otherwise dispose of some of your business assets.

However the rules for each relief are different, thats where Edward Lowe Accountants can help. We keep up to date with all the latest figures to ensure we can save you the maximum amount of capital gains tax for your business.

View the latest Capital Gains Tax Rates