If you transfer, sell or dispose of an asset which results in a net gain then you are likely to be subject to Capital Gains Tax. This only applies to individuals. The list of ‘assets’ that may be subject to this tax is endless, but includes:
HMRC legislation for Capital Gains Tax is very complicated. Various reliefs and exemptions exist so ensuring you take advantage of the appropriate guidance can potentially save you a lot of money.
You may be exempt from paying Capital Gains Tax if you are making the gain on:
Every individual has a tax free allowance of £12,000 – so if your gains are within this threshold you won’t have to pay any tax. You can also offset losses on disposals to reduce any tax that may arise on your gains.
Reporting your capital gain can be done via your self assessment or using the ‘CGT Real Time’ service on the HMRC website.
Various effective tax rates are in place and they depend upon your level of earnings.
At Suretax we can guide you through the process of disposing of your asset and ensure the appropriate filings are made. The above guidance is only a brief summary of the Capital Gains Tax system so if you are in the process of disposing of an asset please contact us at Suretax and we can ensure your disposal is dealt with correctly and you are paying the appropriate level of Capital Gains Tax. Our team of experienced professionals is here to help so please don’t hesitate to contact us.