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Capital Gains Tax

Capital gain tax is deductible from the profits you make by selling or disposing of certain assets. The assets liable to capital gain tax may include; a second property or buy-to-let; sale of a business; and sale of valuables like jewelry, art, and antiques.

What you pay capital tax on

You are liable to pay income tax on:

  • Personal possessions worth £6,000 or more (you don’t have to pay capital tax on profits you make on selling your car)
  • Second property
  • If your main home is very large, it is used for business purposes, or you receive rent from it
  • Shares (not in an ISA or PEP)
  • Business asset
  • Selling crypto assets such as bitcoins click here for more information on if you are liable to pay CGT

When you do not pay capital tax

You don’t pay capital assets on:

  • Betting, lottery, or pools winning
  • Government gifts and premium bonds
  • ISAs or PEPs
  • You might not be liable to pay capital tax on property you inherit click here for more information

What you need to report capital gain tax

To report any capitals gain, you will need:

  • Calculation of each capital gain or loss you report
  • The dates of selling or buying an asset
  • Details of the total amount you paid to buy or received for selling of the assets
  • Other details such as tax reliefs you are entitled to

Capital gain tax rates 

For residential property   28%  If taxable gains and income are above the income tax basic rate band
18% For below that limit 
For trustees of deceased person   28%
For non-residential property, other assets  10% For shared properties 
20% For individuals 
non-publicly listed business 10% If you are eligible Entrepreneurs’ Relief scheme

For more information click here

How we can help? 

Capital gain tax can be a complicated process, especially if you buy or sell assets often. Our tax accountants help you dealing with all the complexities while minimizing your capital gain tax by applying for a variety of reliefs and exemptions you are eligible for. Efficient tax filing requires efficient tax planning. It is best to hire a long-term tax expert to save unnecessary tax payments. Lyel Accountants offers you the best tax services at minimal rates.

If you would like more information regarding this, get in touch with us on 0113 436 0002 or use the form below.