Capital Gains Tax is charged when you sell your property or asset and it has increased in value from the time of its acquisition. You don't usually have to pay Capital Gains Tax when you sell or dispose of your own home due to Private Residence Relief. You may have to pay Capital Gains Tax if you own more than one home or you use your home for business purposes.
If you sell or dispose of a property that does not qualify for Private Residence Relief you must work out the gain or loss.
Often, the Inland Revenue will require a formal written valuation to calculate any Capital Gains Tax due. Any gain in value made on a property is subject to this Tax. (Please note, some exemptions may apply if you buy another property or certain other assets for business use.) In addition, when it is intended to transfer the ownership of a share of a property or the entire property, a value has to be given in order to assess the amount of Stamp Duty to be paid to the Inland Revenue.
The tax arises when you sell or dispose of the property and its value has increased from the time of acquisition. Valuations used by taxpayers in their calculations need checking by the district valuer on behalf of HMRC.
We offer capital gains tax help across Staffordshire, Cheshire and Shropshire including these towns: Leek, Buxton, Congleton, Sandbach, Biddulph, Kidsgrove, Leek, Crewe, Nantwich, Market Drayton, Stafford, Stone, Cheadle, Alton, Eccleshall, Winsford, Stoke-on-Trent, Madeley, Newport, Draycott, Trentham, Shrewsbury, Wilmslow, Chester, Telford, Cannock, Holmes Chapel, Middlewich, Northwich, Macclesfield, Newcastle under Lyme.
Capital gains tax becomes payable when you sell an asset such as a business, a second property, shares or an heirloom and make money from the sale. The amount you pay depends on your income basic rate income tax payers are liable for capital gains tax at 18 per cent, those on higher rates of income tax pay 28 per cent. Investing in businesses qualifying for the Enterprise Investment Scheme is another avenue. If the shares have been held for at least three years they are tax free on disposal.
Captial gains tax applies when you sell or dispose of a list of a list of things. These include: - Most personal possessions that are worth £6,000 or more, the only thing that is exempt from this is your car. - Property that's not your main home. - Your main home if you've let it out, used it for business or it's very large. - Shares that are not in an ISA or PEP. - Business Assets. This list of things is commonly called 'chargeable assets'. Depending on the asset you might be able to reduce any tax that you pay on them by claiming a relief. If you dispose of an asset you jointly own with somebody else then you have to pay the capital gains tax for your share of the gain.