What is Capital Gains Tax?
CGT is a tax charge applied to the gain from the sale of something you own. It’s calculated from the gain made, the increase in value of the sale price compared to the purchase price, for an asset held for more than one year.
Typically it's applicable to:
Shares
Investment funds
Second properties
Inherited properties
The sale of a business
Assets transferred at below their market value
In the United Kingdom, Capital Gains Tax from the sale of residential properties is calculated differently from many other Capital Gains Taxes. For these sales, you are taxed 20% – 28% of the income gained from the sale of the property. These taxes do not apply to your home but apply when you sell buy-to-let properties, business premises, land, and inherited property. Essentially, these taxes apply when you sell any property that is not your home. If the property is a business asset, you may be eligible for tax relief, so ensure to seek advice from our professional tax accountant.
