Capital Gains Tax
Have you used your 2019/20 £12,000 annual capital gains exemption? Consider selling shares where the gain is less than £12,000 before 6 April 2020.
Also, if you have any worthless shares consider a negligible value claim to establish a capital loss. You may even be able to set off that capital loss against your income under certain circumstances which could save tax of up to 45% of the loss.
What is Capital Gains Tax?
It is a tax on any profit you made on the disposal of an asset and it applies to most assets when they’re sold. However, There are some exceptions, for example, you don’t pay Capital Gains Tax when you sell your car, unless you use it for business. Other exemptions include your main place of residence if you own your home, and personal possessions sold for £6,000 or under. Also, you won’t have to pay Capital Gains Tax, if you inherit an asset. You will only need to pay CGT when you sell it.
Capital Gains Tax also applies to assets received as gifts from other people. A valuation needs to be made of how much the asset is valued at when gifted, and if a capital gain arises when you dispose of the asset, tax is applied. There is tax relief available for gifts, so please speak with an accountant for more advice.
Need more information?
We offer a wide range of accountancy services, including capital gains tax advice.
If you want to learn more about how our team can help or simply want some start-up advice from a trusted accountant don’t hesitate to contact us. Call us on 0161 962 1855 or fill in the form below and we will contact you as soon as possible.
