Capital Gains Tax
From April 2024, further changes relating to Capital Gains Tax, announced in the Chancellor’s Autumn Statement, will come into effect.
If you own an asset and sell it/give it away for profit, the ‘gain’ you receive is taxed. This is called Capital Gains Tax (CGT).
Capital Gains Tax is only charged on profits that exceed the CGT allowance. Previously, this allowance was £12,300 per annum. In April 2023, this decreased to £6,000 per annum and from April 2024 it will decrease further to £3,000 per annum. Any gains you make below the allowance are tax-free.
Assets liable for CGT:
- Buy-to-let properties
- Business premises
- Land
- Inherited property
- Bitcoin/Cryptocurrency
- Shares (not in an ISA or PEP)
- Arts/antiques
Exemptions:
- If you gift shares to a spouse or charity you may not need to pay tax
- Shares that are in an ISA or PEP
- Shares held in employer Share Incentive Plans (SIPs)
- UK Government bonds
- Some corporate bonds
- Employee Shareholder shares (depending on the date you received them)
Declaring Capital Gains Tax
If your capital gain profit exceeds the allowance, you will need to file a Self-Assessment Tax Return with the HMRC. Once submitted, the HMRC will tell you how much you owe and how to pay. Get in touch if you would like support with this.
Residential Property Deadline changes
If you sell a residential property in the UK that is not your main home, you will need to inform the HMRC and pay any tax within 30 days (this changed from 60 days back in April 2020).
If you miss this deadline, the HMRC may issue you with a penalty and charge interest on what you owe.
For example:
- Buy-to-let properties
- Inherited property
- Holiday let properties
Further reading
Government article on Capital Gains Tax
Get in touch with us today to speak to one of our accountants for further advice or support.
Call us on 0330 088 1701 or email us at hello@dhbs.uk, where we will be happy to assist you.
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