Capital Gains Tax
Capital Gains Tax
Capital Gains Tax (CGT) is a tax on the profit – or gain – you make when selling an asset. The most commonly sold assets are rental properties and shares.
Given the current economic climate, many individuals are liquidating rental properties or even properties they once rented, requiring the completion of a capital gains return. As with most taxes, there are numerous rules and regulations to navigate. Why not alleviate the stress and let us handle the return on your behalf?
Property
Property sales in the UK trigger the requirement to report and settle any Capital Gains Tax liabilities within 60 days of the property's sale, this came into effect on sales after October 27, 2021.
To accurately complete the Capital Gains on UK Property declaration, the following information is required:
- Address and postcode of the property
- Date the property was acquired
- Date of the property sale/disposal, also known as the exchange date.
- Date you ceased being the property’s owner (known as completion date)
- Value of the property when you acquired it
- Value of the property at the time of the sale/disposal
- Any expenses related to the purchase, sale, or property improvements
Shares
You might be liable for Capital Gains Tax if you make a profit upon selling or disposing of shares or other investments.
Shares and investments you may need to pay tax on include:
- Shares that are not in an ISA or PEP
- Certain bonds (not including Premium Bonds and Qualifying Corporate Bonds)
It’s important to note that CGT is not applicable when you dispose of:
- Shares you’ve put into an ISA or PEP
- Shares in employer Share Incentive Plans (SIPs)
- UK government gilts (including Premium Bonds)
- Qualifying Corporate Bonds
- Employee shareholder shares - depending on when you got them
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