Capital gains tax is relatively straightforward in principle: capital gains tax is made when you sell something for a higher price than you paid for it, and so tax is liable on your profit.

Effective tax planning will allow you to minimise your tax bill by making the most of the tax allowances and reliefs. If you’re not planning correctly then you’re paying real money as a consequence, something an accountant will help you prevent.

Capital gains tax, allowances and rates for individuals

Capital gains tax (CGT) applies to financial gains made when selling anything but some assets, such as your primary home, are exempt. You may gain on some sales and lose on others, and capital gains tax is calculated using your overall profit or loss on these items. capital gains tax is collected through self-assessment, and you must provide the information on your tax return.


Your 2016/17 capital gains tax allowance of £11,000 means you only pay capital gains tax on capital gains tax above this amount and never on the initial £11,000. The rate of capital gains tax depends on your total income and is usually 10% and 20%.

There are tax reliefs available, and your accountant will be able to better advise you on their use. These shelters include entrepreneur’s relief for people selling par tor all of their business, and business asset rollover relief if you find yourself investing and capital gains in new business assets.

Capital Gains Tax Planning

Capital gains tax for companies — chargeable gains

The capital gains of business are treated a little differently to those of an individual. Firstly they are known as chargeable gains, and there is no tax allowance in place although you can claim an indexation allowance which reduces the chargeable gain by the current level of inflation.

If a business makes chargeable gains, it can reinvest in the business, roll over the gain and defer tax liability. Alternatively, you may be exempt if your chargeable gain is invested in the purchase of shares under either the Enterprise Investment or the Seed Enterprise Investment Scheme.

Chargeable gains are subject to corporation tax and are included on your tax return. The capital gains tax rate that UK companies pay is their corporation tax rate, once indexation has been taken into account of course.

  • Capital Gain Tax
  • Capital Gain Tax for Individuals
  • Personal and Business Capital Gain Tax Information

Capital Gain Tax

Capital Gain Tax

Capital Gain Tax Advice written by: susmoko Capital gain Tax is a type of tax that you have to pay, especially when you sell something. This tax is going to be applied on any items that have higher value than before. You only need to pay the tax for any gains that you can get from this selling process. In order to show this calculation, we are going to read a good example from this page now. Let’s say you have a painting that was bought for about $5,000. Then, you are going to sell this painting for about $25,000. It means that you make a gain for about $20,000. This gain is going to be taxed by using the Capital Gain tax.

There are some classifications of any objects from this tax. You are required to pay this tax when you sell most personal possessions that are more than $6,000, your own property that is not your own home, shares, and also business assets. Your main home can also be classified as tax subject, when you use this property for your own business. These assets are commonly known as chargeable assets. It is very important for you to check and also know about these assets, so you can predict and also calculate your capital gain tax easily.

Capital Gain Tax for Individuals

Capital Gain Tax for Individuals

You need to know that individuals and also business are treated differently, especially in the calculation of the capital gain tax. Personal capital gains tax or business gain made by self employed personnel are going to be calculated via capital gain tax calculation. If you have a company that sells any possessions, you need to pay for the corporation tax for your company. Therefore, the capital gain tax is not applicable for any companies that are owned with limited partnership. Corporation tax and also capital gain tax have many differences between those types of tax calculations.

Personal and Business Capital Gain Tax Information

Personal and Business Capital Gain Tax Information

There are some important details that you have to know about capital gain tax. This type of tax is going to occur when you sell or dispose any assets. However, this tax can be exempted, especially when you give any gifts to your spouse, wife, husband, and also children. You also need to know that some personal possessions are not included in this tax, for example car, various taax free investments, such as ISAs, and any other possessions that are worth less than $6,000. You are also going to receive private residence relief for your own main home.

You don’t need to pay for the capital gain tax when your personal and also business capital gains are less than the tax-free allowance that is about #11,100 in this year. You can also consider your loses that you made, especially when you dispose any assets. These loses can be used to against gains when you want to calculate the overall capital gain tax for your needs. This capital gain tax is usually payable at about 10 percent if your income is considered within the basic tax rate. This tax is much lower than any other capital gain tax or capital gains tax rate on the previous period that was about 18 and also 28 percent.

It is very important for you to calculate the overall business or personal gains in the current financial year, so you will be able to calculate the amount of capital gains tax now. You will be able to avoid getting any tax issues, especially when you make any payments of this type of tax correctly. You should never try to delay or avoid any payments of capital gain tax, in order to avoid any penalties that may given by the tax authorities in the UK.

We recommend you to seek professional financial consultants. our company can provide complete financial service for all customers. We will make sure that you are not going to pay more capital gain tax than you are required. We will also help you complete any necessary paperwork, especially when you want to submit your capital gain tax for your personal or business needs. Don’t forget to consult with HMRC, in order to learn more about this type of tax and how you can complete your responsibility on this tax. If you don’t know how to take care of this tax, we are ready to do everything for you on your behalf.