Are you liable for Capital Gains Tax?
Capital Gains Tax (CGT) is the tax liable on profits (capital gains) made from selling or disposing of assets. You will pay Capital Gains Tax (CGT) when you sell (dispose of) the following:
- Most personal possessions valued over £6,000 – apart from your vehicle
- Capital Gains Tax Property – Property, which is not your main residence – unless, you have let your property, have used it for business purposes or if it is very large.
- On any shares purchased which are not in the form of an Individual Savings Accounts (ISA) or Personal Equity Plan (EP).
- On any business assets.
Principal Private Residence Relief exemption (PPR)
As a rule, most people do not generally pay Capital Gains Tax (CGT) on the sale of their home. However, new rules on Capital Gains Tax have changed the ‘final period exemption’ bringing higher numbers of property transactions within the scope of Capital Gains Tax (CGT). This means that you now have to pay any due Capital Gains Tax on disposals of residential properties within 30 days from the date of disposal.
Capital Gains Tax can be very confusing. Don’t get caught out – know your Capital Gains rates. Just talk to our Capital Gains Tax advisors.
At McCabe Ford Williams we will ensure you remain compliant and up to date with the rules and regulations regarding Capital Gains Tax.
Don’t get caught out by Capital Gains Tax (CGT).
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