Capital Gain Tax
Capital gains tax can apply to the disposal of assets, from a single item to a multi-million-pound business. There are numerous relief opportunities available to manage liabilities, thus maximizing the money in your pocket.
Broadly, any transfer of assets by an individual (or trustee) is subject to capital gains tax, unless a specific exemption applies, or relief can be claimed. Whilst many people are aware that capital gains tax is not generally payable on the sale of their home, relatively few realize this is due to a specific relief for the disposal of a main private residence. Therefore, it does not apply in all circumstances and can be restricted in some cases. Liabilities to capital gains tax can arise in unexpected situations, such as the gift of an asset to your children. It is therefore vital to obtain the correct advice and avoid potential penalties.
Sales of artwork, antique furnishings, and other chattels can be subject to capital gains tax, whereas other assets such as cars can be exempt. Before selling anything of value, it is wise to take advice. It is therefore well worth discussing your long-term plans with our tax team at SEARS Accountants, so you can structure your assets in a way that keeps Capital Gains tax to a minimum when the time comes to sell.