Capital Gains Tax

Capital Gains Tax (CGT) is a tax payable when you sell an asset you own for more than you paid for it.  Every individual can earn £6,000 a year in total without paying capital gains tax (reducing to £3,000 from 06th April 2024).

CGT is payable on the sale of assets such as:-

• Buy-to-let properties (i.e. a property that is not your main home)
• Your business (there are special rules when selling / closing a business which can significantly reduce the amount of CGT payable)
• Shares that are not in an ISA
• Crypto assets (such as BitCoin)
• Personal possessions

CGT is payable at the following rates, depending whether you are a basic (20%) or higher rate income tax payer (40% / 45%):-

• 10% basic rate
• 20% higher rate

There are higher rates to pay for the sale of buy-to-let properties:-

• 18% basic rate
• 28% higher rate

As you can see this can be one of the more complex areas of taxation and it really does pay to get the right advice first time.  

If you have an upcoming transaction where you need advice or have sold an asset and need guidance on the next steps call us today on (0117) 318 4403 or e-mail us at enquiries@brunelfinancial.co.uk.