Capital Gains Tax is a tax on the gain or profit you make when you sell, give away or otherwise dispose of something that you own, such as shares or property. There’s a tax-free allowance and some additional reliefs that may reduce your Capital Gains Tax bill. Sometimes you may have no tax to pay.
What is Capital Gains Tax?
Capital Gains Tax is a tax on the profit or gain you make when you sell or ‘dispose of’ an asset.
You usually dispose of an asset when you cease to own it – for example if you:
· sell it
· give it away as a gift
· transfer it to someone else
· exchange it for something else
· receive compensation for it – e.g. you receive an insurance payout when an asset’s been destroyed
It’s the gain you make – not the amount of money you receive for the asset – that’s taxed.
With the tax regime becoming more complex and more emphasis being put on taxpayers’ individual responsibilities, everyone who is subject to taxation needs professional advice and support.
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