Capital Gains Tax ( CGT)
What is CGT?
It is a tax imposed by the government on individuals who make a gain by selling assets other than their main home, such as making a profit on stocks or profiting from properties which are bought for the purpose of resale.
Why is it important to know about CGT?
You may end up receiving a hefty bill on your personal earnings as each year the CGT tax alone contributes arround 3 billion pounds a year to HM Revenue and customs.
Who is liable to Pay CGT
All UK residents are subject to CGT if they make a gain over the given limit.
Whats the CGT exemption limit?
In the last 10 years CGT allowance has risen from just 6500 to 9200, which means anything earned outside the 9200 bracket will be held liable for CGT.
Secondly exemption applies on assets such as your
* Personal home
* Premium Bonds
* Stocks and shares held in ISAs or PEPs
* Child Trust Funds
* National Savings Certificates
* Personal Cars and posessions worth upto 6000
* Also in the event of death the assets belonging to a person are not liable to CGT
When is CGT Paid?
This is payable on 31st January following the end of the tax year in which the gain has been made.
Any Concessions under CGT?
Taper Relief policy has been made available to precisely calculate and reduce the amount of CGT by assessing the duration the asset has been kept.
How to pay GCT?
All gains made over the set government limit must be reported to HM Revenue & Customs.
For further help and guidance hmrc.gov.uk has detailed information and reliefs available on CGT.
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