Nature of Capital Gains tax Capital Gains Tax is a tax on the rise in value of an asset. CGT arises when an asset is “disposed of”, which will usually be by a sale but will also occur on a gift or on the receipt of any capital sum where an asset is destroyed e.g. […]
Changes in Rate and Reforms UK Capital Gains Tax (CGT) was reformed significantly in 2008. A range of exemptions and reliefs which used to apply, were removed. Many of these exemptions had reduced the effective rate of tax to as low as 10%. Formerly taper relief was available to reduce the capital gain by up […]
Company Subject to CGT Rules Company’s capital gains and losses are computed in accordance with general Capital Gains principles. The same general capital gains tax rules apply. There is no exempt amount in respect of capital gains tax for companies. This is in contrast to the position for individuals. Where capital losses arise they are […]
Investments Capital gains tax issues arise in relation to investments in companies or partnerships. If a loan is given to a sole trader, partnership or private company, a CGT loss may arise if the Revenue is satisfied that the loan has become irrecoverable. There are various conditions. In particular the borrower must be resident in […]
Assessment of CGT CGT is assessed for all gains and losses by the taxpayer in the tax year 6th April to the following 5th April. The Tax is payable by the 31st January in the following year. The date which triggers CGT liability is the date of the sale contract rather than the date upon […]
Residence An individual who is UK resident or ordinarily resident and is UK domiciled is assessed to CGT on his worldwide gains. Individuals who are not resident in the UK are not usually assessed on CGT even if the assets are UK assets. Non-residents usually qualify for full tax allowances. They may also qualify for allowances […]