CAPITAL GAINS TAX
by Applegate Accountants, Cheshire

Call us now for Capital gains tax assistance Capital Gains Tax (CGT) applies in certain circumstances to individuals who dispose of capital assets that they have previously acquired. It often applies to the sale or gift of an asset that may have been owned for quite some time. This can result in what is called a 'Chargeable Gain.'

At Applegate & Co we work closely with an ex tax inspector who specialises in utilising the law to ensure that taxpayer uses all their allowances to the full.

Or we can call you!
Just fill out the form below

Capital Gains tax applies to both personal assets and business assets. A disposal of an asset arises when it is sold (or part of it is sold), given away, lost of destroyed. Although it is unlikely that a gain will arise on lost of destroyed assets.

Two special situations where disposals do not give rise to capital gains tax are, disposals arising because the owner has died and disposals between spouses (husband and wife)

There is a simple rule to remember about chargeable items, if an asset is not exempt then it must be chargeable. Check with your accountant for the list.

Captial Gains Tax Cheshire All individuals are entitled to an annual exemption for each tax year. This works in a similar way to the personal tax allowance that is given under PAYE. The exempt amount is deducted from the total net gains that have been calculated on the individual assets that have been disposed of during the year. Capital gains tax is then worked out on the balance. Each year the exempt amount is changed (generally in the budget)

Once the exempt amount has been deducted the balance of the gains is subject to capital gains tax. Although this is a separate tax from income tax it shares the same tax bands. Gains are treated as if they were added on top of taxable income, and the rates 10%, 20% and 40% are applied through the bands.

Because almost every individual that is liable to CGT also has some income in the same tax year, the rate of 10% is rarely used for CGT. If the individual is already a higher rate taxpayer under income tax, he/she will automatically pay 40% CGT and this is quite often the case.

There are also other relief's that are available such as indexation allowance and taper relief.

It is always best to check with your accountant, we have access to all the latest updates which could save you thousands in capital gains tax.

CAPITAL GAINS TAX by Applegate Accountants, Cheshire

E-mail

CAPITAL GAINS TAX
by Applegate Accountants, Cheshire