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_Capital Gains Tax UK_ What You Need to Know

<br> At Capital Gains Tax Expert, we are a team of seasoned professionals with years of experience in UK tax legislation. We specialize in providing bespoke capital gains tax solutions for individuals and businesses across the UK.<br>

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_Capital Gains Tax UK_ What You Need to Know

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  1. Capital Gains Tax UK: What You Need to Know Capital Gains Tax (CGT) is a tax applied in the UK on the profit made when selling or transferring certain assets, such as property, shares, or business assets. If your asset has increased in value since you acquired it, you may be liable to pay CGT on the gain. Understanding how CGT works, the rates, and available allowances can help you manage your tax liability efficiently. When Does Capital Gains Tax Apply? You may need to pay CGT when you sell or dispose of: Property (excluding your main home). Shares & investments (unless in an ISA or pension). Business assets when selling a company or shares. Valuable personal possessions worth over £6,000 (e.g., art, antiques, jewelry). When CGT Does Not Apply: Selling your main residence (unless it has been rented or used for business). Gifts to spouses or civil partners (tax-free transfers). Assets passed to beneficiaries in a will (Inheritance Tax may apply instead).

  2. Capital Gains Tax Rates in the UK The CGT rate depends on your income tax band and the type of asset sold: Basic Rate Taxpayers (Income up to £50,270) ● 10% on most assets. ● 18% on residential property. Higher & Additional Rate Taxpayers (Income over £50,270) ● 20% on most assets. ● 28% on residential property. Example Calculation: If a higher-rate taxpayer sells a rental property with a £30,000 gain, the CGT due would be £8,400 (28%). Capital Gains Tax Allowance

  3. Each UK taxpayer has a CGT-free allowance, meaning you don’t pay tax on gains below this amount. CGT Allowance for 2024/25: £3,000 per individual. Couples can transfer assets tax-free, effectively doubling their allowance to £6,000. How to Reduce Capital Gains Tax Use your annual allowance – Spread asset sales across multiple tax years. Invest in ISAs & pensions – These accounts shield gains from CGT. Offset losses – If you sell an asset at a loss, you can deduct it from taxable gains. Conclusion Understanding UK Capital Gains Tax is essential for managing your finances efficiently. With careful planning and tax-saving strategies, you can legally minimize your CGT bill and maximize profits. ? Visit our website at https://capitalgainstaxexpert.co.uk/, At Capital Gains Tax Expert, we are a team of seasoned professionals with years of experience in UK tax legislation. We specialize in providing bespoke capital gains tax solutions for individuals and businesses across the UK.

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