When do I have to pay Capital Gains tax?
You have to pay Capital Gains tax when you sell an asset, for example, a business, a second property or shares on an heirloom and you make money from the sale. Some assets are tax-free. You don’t have to pay Capital Gains tax if all your gains in a year are under your tax-free allowance. The tax-free allowance for the 2023/24 tax year is as follows:
- £3,000 for trusts
You also don’t pay it on certain assets, including any gains you make from:
- ISAs or PEPs (personal equity plan)
- UK government gilts and premium bonds
- Betting, lottery or pool winnings
When do I pay capital gains tax?
You pay capital gains tax when the following applies:
- Most personal possessions worth £6,000 or more, apart from your car
- Property that isn’t your main home
- Your main home if you’ve let it out, or used part/all of your home exclusively for business
- Shares that aren’t in an ISA or PEP
- Business assets
These are known as chargeable assets.
We can help to ensure your capital gains accounts are in order by using the most tax efficient methods to allow you to only pay what you owe and keep the most from your assets.
For more information and advice about capital gains taxes in Derby and the wider Midlands area, please contact us on 0115 824 0555 or email us via our contact form below.
To discover more about the services that WKM Accountancy Services offers, visit our services page.