Capital Gains Tax

Capital gains tax (CGT) is chargeable when you sell or give away an asset that has increased in value.

The gain or profit is taxed at 18% after claiming the annual exempt amount which stands at £10,100 per person on gains made in 2009/10.

More deductions may be available to reduce the gain and in particular “entrepreneur’s relief” is claimable by business owners on the disposal of a business, which reduces the tax rate to 10% on the first £1million of such gains during the person’s lifetime. It also applies to certain share sales and certain assets ‘connected with’ a qualifying company.

There are exemptions from CGT such as on the sale of your main residence although the sale of a second home such as a ‘buy to let’ is liable to tax.

CGT is payable on 31 January after the tax year in which the gain is made.

The CGT regime is so complex that we recommend you talk to a professional adviser.

To find out more or if you would like to arrange a free initial consultation where you can discuss how you want us to listen and help in more detail, please call Alan or Gillian on 01302 311777. Alternatively you can email alan@ar-accountants.co.uk or gillian@ar-accountants.co.uk