Capital gains tax are chargeable on individuals and companies. For chargeable gain to arise there must be:
- A chargeable persons; and
- A chargeable disposals; and
- A chargeable assets.
You may have to pay Tax even if your asset is overseas. There are special rules if you’re a UK resident but not ‘domiciled’ and claim the ‘remittance basis. Also you will have to pay tax on gains you make on property and land in the UK even if you’re non-resident for tax purposes. You do not pay tax on other UK assets, for example shares in UK companies, unless you return to the UK within 5 years of leaving. However you only have to pay tax on your overall gains above your tax-free allowance (called the Annual Exempt Amount).
The tax-free allowance is:
- £6,150 for trusts
Chargeable disposals arise when you
- Sell an assets or part of it.
- Gift an assets or part of it.
- The assets is lost or destroyed.
There are certain assets are exempt from gains taxes, The following are exempt assets.
- Motor vehicles suitable for private use
- National Savings and Investments certificates and premium bonds
- Gilt-edged securities (treasury stock)
- Qualifying corporate bonds (QCBs)
- Certain chattels
- Investments held in individual savings accounts (ISAs)
- Foreign currency bank accounts held by individuals
- Decorations for bravery where awarded, not purchased
- Damages for personal or professional injury
- Debts (except debts on a security)
capital gains tax are very complex area of tax and many reliefs and exemptions are available, get in touch with Adam Accountants if you are selling such an assets in order to minimise your tax liabilities.
Please contact us for a free, no obligation consultation on: 01753 373 505 or complete our Contact form and we will get back to you promptly.