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Capital Gains Tax

Capital Gains Tax (CGT) is a tax on the profit or gain you make when you sell, give away, transfer or exchange ('dispose of') something of value - ‘an asset’. You don’t pay Capital Gains Tax on some assets, for example personal possessions worth £6,000 or less, or in most cases, your main home. The first £10,100 (2009/10 and 2010/2011) of quallifying gains is exempt from CGT.

CGT applies to UK resident individuals, executors or administrators ('personal representatives) responsible for a deceased person's financial affairs and trustees of a settlement .

For limited companies capital gains form part of the total profits of the company on which they pay Corporation Tax.
Special Capital Gains Tax rules may apply if you don't normally live and work in the UK.

Common assets that attract Capital Gains Tax when they are sold or disposed of include:

  • land
  • buildings, for example a second home
  • personal possessions such as a painting worth more than £6,000
  • shares or securities
  • business assets, for example business premises or goodwill
The Capital Gains Tax rules changed significantly from 22nd June 2010. Please contact your accountant to discuss your personal situation.
 
Capital gains tax rates
 
 
 
2010-11
2011-12
 Standard rate of CGT
18%
18%
Higher rate (from 23/6/10)
28%
28%
Entrepreneurs' Relief fraction (to 22/6/10)
 4/9
n/a
Rate for Entrepreneurs (from 23/6/10)
10%
10%
 
 

Disclaimer

The content and advice is for information only. Last updated 26.07.2010.

For up to date information and advice, based on your specific circumstances, please contact us.

We cannot be held responsible for actions taken with reference to the content contained on this website.

 


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