Capital Gains Tax

If you’re selling an asset, it’s important to be aware that you may need to pay capital gains tax on any profit you make. At RRDigitax, we can provide the guidance you need to navigate this process effectively. Learn more about capital gains tax here, and don’t hesitate to get in touch with us for personalized assistance!

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What is Capital Gains Tax and Do You Need to Pay It?

Capital Gains Tax (CGT) is a tax applied to the profits you make when you sell (or dispose of) an asset that has appreciated in value since you acquired it. This tax is relevant to individuals who experience gains from selling, transferring, or otherwise disposing of assets.

It's important to note that you will only be taxed on the actual gain made—not on the total sale amount. This means you pay tax only on the profit, which is the difference between the purchase price and the selling price.

If you're considering selling a personal asset or a portion of your business, our team can provide expert advice on tax planning strategies available to you. This guidance can help mitigate or reduce your potential tax liabilities before you proceed with the sale.

Do I Have to Pay Capital Gains Tax?

You may be liable to pay Capital Gains Tax (CGT) on several types of assets, including:

Business assets and shares
Shares that aren’t held in an ISA or PEP
Personal possessions valued over £6,000 (excluding cars)
Property you own, apart from your primary residence
Your main home, but only if it is large, rented out, or used for business purposes

It's worth noting that you could still incur CGT even if these assets are given as gifts or transferred to someone else. Additionally, if your asset is lost or destroyed, you may be required to pay CGT on any insurance payout you receive.

Fortunately, there is a tax-free allowance known as the Annual Exempt Amount. If the total value of the assets you sell or dispose of is below £12,000, you will not be liable for Capital Gains Tax.

How We Can Help

Are you unsure whether you’re liable for Capital Gains Tax (CGT) or how to calculate what you owe? Getting assistance from a qualified accountant is the safest choice. We can put your mind at ease and ensure that you’re filing everything accurately and legally.

With our services, we will:

Determine your liability for Capital Gains Tax
Calculate the exact amount of CGT you owe
Assist you in reporting any gains through the real-time Capital Gains service or your usual Self Assessment returns
Help you minimize your overall tax liability, ensuring you don’t pay more than necessary

Don’t navigate this complex process alone. Partner with an experienced accountant for peace of mind. Contact us for a quote or sign up today!

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