When you sell (‘or dispose of’) something (an ‘asset’) that’s increased in value the tax on the profit is called Capital Gains Tax (CGT). The gain is the figures that is taxed, not the amount of money received.
Disposing of an asset includes
- Selling it
- Giving in it away as a gift, or transferring it to someone else
- Swapping it for something else
- Getting compensation for it e.g. an insurance pay out it it’s been lost or destroyed
- Overseas assets
Some assets are tax free and you do not need to pay Capital Gains Tax if the cumulative total of all your gains in a year are under your tax free allowance.
CGT rules for UK property sales have been updated and any tax on gains must now be reported and paid within 30 days of completion. If you own a second home or more and need advice we are here to support you as it can become very complicated.
Talk to us now to discuss whether you need to be reporting any of this information or if you are unsure on your Capital Gains Tax situation.