Capital Gains Tax
Introduction
Individuals are charged Capital Gains Tax (CGT) in respect of gains made from selling, or otherwise disposing of assets. For a company, such gains form part of the profits charged to corporation tax.
Understanding CGT can be important if you are looking to build up and then sell a business and use the proceeds to fund your retirement.
For many people, selling or transferring a business may make them liable to pay CGT on their gains, including gains on their share of partnership assets. The term 'assets' covers all forms of property, including shares, machinery and the goodwill of a business.
CGT can be complex and varies according to your circumstances. You may wish to take professional advice from your accountant. This is especially important if your business holds assets that will increase in value, or you are thinking of selling your business and business assets, which might lead to a significant tax bill.
There was a significant reform to the way CGT is calculated for gains taxable after 5 April 2008.
This guide explains how CGT affects you and outlines the main changes to the way CGT is calculated. Companies that are liable to corporation tax in respect of their chargeable gains are not affected.
Subjects covered in this guide
- Introduction
- What is a capital gain?
- Annual allowance and allowable losses
- Other reliefs and allowances
- Some exemptions and reliefs from Capital Gains Tax
- Paying Capital Gains Tax
