Capital Gains Tax

When you dispose of an asset, there is potentially tax to pay on any gain made from this disposal. This most commonly arises in the sale of:

  • Shares, where those shares are not held in an ISA or PEP
  • Property, which is not your Principal Private Residence
  • Personal possessions which are valued at over £6,000, except your car
  • Business assets

Capital Gains Tax is payable on disposals of assets in excess of your annual allowance (currently £12,000). The disposals are required to be detailed and submitted to HMRC with the Personal Income Tax Return Form. Capital Gains Tax is due for payment by 31st January following the tax year of the liability.

On the other hand, losses made on the disposal of any assets can either be set against gains made in the same year or carried forward to future gains. The losses also require to be detailed as above.

In addition, HMRC have recently introduced legislation with regard to the disposal of any property which is not your principal private residence. If a gain has been made, and is in excess of the annual Capital Gains Tax Allowance, you are required to report this to HMRC within 30 days of the date of completion of the settlement and make payment of any tax due. The payment will be taken into account at the end of the relevant tax year for your normal annual return.

Contact us today or fill in our form and we will call you back.

Related Posts

Fire and smoke alarms

Fire and smoke alarms

New rules come into force in Scotland from February 2022 regarding fire and smoke alarms. The new rules provide that all homes in Scotland must be fitted with an appropriate number ...

The decision to seal Prince Philip’s Will – an update

The decision to seal Prince Philip’s Will – an update

In October 2021, we wrote a blog about the decision to seal His Royal Highness Prince Philip’s Will for 90 years (available here). As discussed in our previous blog, the hearing ...

Can I disinherit my children on my death?

Can I disinherit my children on my death?

Usually the way in which someone chooses to deal with their estate upon their passing is a private matter discussed between themselves, their lawyer, and possibly those who stand to ...

The decision to seal Prince Philip’s Will – are Wills public documents in Scotland?

The decision to seal Prince Philip’s Will – are Wills public documents in Scotland?

You may have seen the recent announcement that His Royal Highness Prince Philip’s Will is to be kept secret or ‘sealed’ for the next 90 years.  The President of the ...