14:15 04 April 2013
If you’re thinking about selling assets for a higher price compared when you first bought them, keep in mind that you’re more likely to pay Capital Gains Tax or CGT. Chargeable assets include all forms of properties, which include land and building, business assets, shares, and goodwill.
Rate of CGT is 28per cent of the taxable gains and income, which is above the income tax basic rate band. Below that limit, the CGT rate is 18per cent. For trustees and personal representatives of deceased persons, the rate is 28per cent on all gains.
How to reduce it?
The following can reduce the amount of chargeable gain:
There are several tax reliefs that can help you reduce the chargeable gain thus reducing the CGT. These include the following:
Truth be told, Capital Gains Tax is a complicated topic. If you’re selling assets and if you’re not very familiar with CTG, it’s recommended to consult with an expert to get the guidance you need.
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