You pay CGT on profit when you sell-

Capital Gains Tax or CGT is defined as the tax levied on a profit that an individual makes when they sell or dispose of an asset that has an increased value. Only the gain that you make from the selling is taxed in this case, not the entire amount of money. For instance, if you buy a property at a certain market value and sell it at a higher market value, the profit made from that purchase will come under the Capital Gains Tax purview. Even though the concept seems fairly convenient, there are a lot of calculations you need to keep in mind.

Apart from tax returns, reducing tax liability is also crucially important one of the reasons why accounting experts and tax advisors at Goodhams takes Capital Gains Tax filing assistance to a comprehensive level. From calculations for tax returns to helping you minimize both your current and future CGT liabilities- Goodhams can help make this process effortless for you.

Eligibility: Explaining Asset Disposal:

Capital Gains Tax is levied on any profits made from asset disposal, which means, you’ll be eligible for CGT if,

  • You’re selling your asset at a higher amount than the original purchase
    • Transferring the asset rights to someone else (even if its a gift)
      • Exchanging the asset
        • Claiming compensation in terms of insurance payout for the asset in case of loss or damage

          Chargeable Assets

          • An asset worth £6000 or more based on trusts
            • An asset, such as personal property or real estate that you’ve put for to-let. The rent will be considered a profit if you have partial or complete ownership of the real estate.
              • An asset such as shares that are not in the PEP or ISA
                • Assets pertaining to your business
                  • An asset that is in a joint venture. In case you have an asset with joint ownership, you’ll be charged CGT on the share of your gain from that joint asset.
                    Depending on your asset type, you can reduce your tax amount by claiming relief. We at Goodhams, have come across multiple individuals with business assets tied up in trading companies, partnerships, properties, and even abroad. To get the best tax break for your value-worthy assets, we have an excellent entourage of professional finance advisers who works with you to reduce your Capital Tax Gains pressure while ensuring all the legal compliances including hefty paperwork and documentation is in accordance to the tax authorities.

                  Capital Gains Tax Allowances

                  The tax-free allowance for CGT is-

                  • £12000 for individuals
                  • £6000 for trusts

                How can Goodhams Help?

                There are a lot of complication involved with taxes, especially if you have multiple income sites or you’re currently partnered up with a steady flow of profit from business assets. Apart from paperwork accuracy, precision tax-saving strategies are a must for you and that’s where we at Goodhams come in to help you maximize your savings on tax returns. We have formulated efficient tax-efficient strategies and our financial counsellors are here to consult the best possible options with you. The information presented on this site is for general information purposes only. If you have any further questions, kindly contact one of our representatives and we will get back to you with a solution as soon as possible.

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