The ideal approach to reduce your capital gains tax for your company.

1. Capital gains Tax Presented by Season Associates

2. Concept of capital gain Tax • Capital Gains Tax(CGT)is the tax which is applicable on the profit made by an individual / organisation / institution when there is a disposal or selling or transferring of an asset. For simplification it can be considered as a tax that is to be made by a chargeable person making a chargeable disposal of a chargeable asset.  • A chargeable person could be an individual or a company, when they make a selling they are entitled to pay tax on the profit earned, even if they dispose there asset in the form of a gift they are still entitled to pay capital gain tax. •  It is been made applicable to the public by HMRC and one has to mandatorily file it. The rules related to UK capital gains taxhas been modified and came into effect on April 6th 2020

3. Example of Capital gains Tax Short term capital gain vs Long term capital gain

4. How to calculate capital gain Tax There are two things on the basis of which CGT is charged Which type of taxpayer one is • Basic rate taxpayer • Higher rate or additional rate taxpayer Asset and its type that one has sold • In order to calculate capital gains tax on property one has to consider in which taxpayer category they lie, based on which the % of tax applicable can be understood and same can be used for calculating capital gains tax. The below mentioned table will help you to understand in which bracket you lie as a taxpayer.

5. The Below mentioned table addresses the tax rate for the year 2020 / 2021

6. Feel free to resolve your query @ • Phone No:07789 038 444 / 02079932090 • Email: info@seasonassociates.co.uk • Website: http://seasonassociates.co.uk/ • Address: Season Associates 44 Broadway, London, E15 1XH