{"id":19801,"date":"2022-11-09T13:48:13","date_gmt":"2022-11-09T13:48:13","guid":{"rendered":"https:\/\/www.moorethompson.co.uk\/blogs\/?p=19801"},"modified":"2022-11-09T13:48:15","modified_gmt":"2022-11-09T13:48:15","slug":"capital-gains-tax-what-do-you-need-to-know","status":"publish","type":"post","link":"https:\/\/www.moorethompson.co.uk\/blogs\/capital-gains-tax-what-do-you-need-to-know\/","title":{"rendered":"Capital Gains Tax: What do you need to know?"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/www.moorethompson.co.uk\/blogs\/wp-content\/uploads\/2022\/11\/M.T.-Blog-Graphic-12.10.2022-2-1-1024x576.png\" alt=\"\" class=\"wp-image-19802\" srcset=\"https:\/\/www.moorethompson.co.uk\/blogs\/wp-content\/uploads\/2022\/11\/M.T.-Blog-Graphic-12.10.2022-2-1-1024x576.png 1024w, https:\/\/www.moorethompson.co.uk\/blogs\/wp-content\/uploads\/2022\/11\/M.T.-Blog-Graphic-12.10.2022-2-1-300x169.png 300w, https:\/\/www.moorethompson.co.uk\/blogs\/wp-content\/uploads\/2022\/11\/M.T.-Blog-Graphic-12.10.2022-2-1-768x432.png 768w, https:\/\/www.moorethompson.co.uk\/blogs\/wp-content\/uploads\/2022\/11\/M.T.-Blog-Graphic-12.10.2022-2-1.png 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Capital Gains Tax (CGT) is a tax applied on the profit you receive when disposing of an asset.<\/p>\n\n\n\n<!--more-->\n\n\n\n<p>You are not taxed on the amount of money you receive, but on the gain you make.<\/p>\n\n\n\n<p>For example, if you bought something for \u00a310,000 and sold it for \u00a320,000, you\u2019ve made a gain of \u00a310,000, and that is what will be taxed subject to any available annual exemption.<\/p>\n\n\n\n<p><strong>What do you pay CGT on?<\/strong><\/p>\n\n\n\n<p>CGT applies when you dispose of \u2018chargeable assets\u2019, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Personal belongings&nbsp;worth \u00a36,000 or more<\/li><li>Property that\u2019s not your main residence<\/li><li>Your main home if you\u2019ve&nbsp;let it out or used it for business<\/li><li>Any shares&nbsp;that are not in an&nbsp;ISA&nbsp;or&nbsp;PEP<\/li><li>Business assets.<\/li><\/ul>\n\n\n\n<p>If you jointly own the asset with somebody else, you must pay CGT on your share of the gain.<\/p>\n\n\n\n<p>If you are gifting the asset to someone, you may still need to pay CGT, but this is not usually the case if you are gifting&nbsp;to your spouse, civil partner, or a charity.<\/p>\n\n\n\n<p>You do not pay CGT on certain assets, including any gains you make from:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Cash<\/li><li>Private cars<\/li><li>Assets in ISAs&nbsp;or&nbsp;PEPs<\/li><li>UK Government gilts and Premium Bonds<\/li><li>Betting or lottery winnings.<\/li><\/ul>\n\n\n\n<p><strong>Record keeping<\/strong><\/p>\n\n\n\n<p>To determine your gains, you need to collect records which you must keep for at least a year following the&nbsp;Self-Assessment deadline.<\/p>\n\n\n\n<p>If you filed your tax return late, or HM Revenue and Customs (HMRC) have launched a check into your return, you\u2019ll need to keep them for longer.<\/p>\n\n\n\n<p>For businesses, records must be kept for five years after the deadline.<\/p>\n\n\n\n<p><strong>How much will you pay?<\/strong><\/p>\n\n\n\n<p>The rate you pay will differ based on the amount of your total taxable income and the type of asset you are disposing of.<\/p>\n\n\n\n<p>In the current 2022\/23 tax year, the basic rate on residential property gains is 18 per cent and 10 per cent on all other assets.<\/p>\n\n\n\n<p>The additional rate of CGT is 28 per cent on residential property and 20 per cent on all other assets.&nbsp;<\/p>\n\n\n\n<p>Any gains on UK residential property must also now be recorded via a separate online UK Residential Capital Gains Tax Account and submitted to HMRC and the relevant capital gains tax paid within 60 days of completion of any sale.<\/p>\n\n\n\n<p><strong>Need help on CGT and other tax-related matters? Contact us today.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Capital Gains Tax (CGT) is a tax applied on the profit you receive when disposing of an asset.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[26,33],"tags":[],"class_list":["post-19801","post","type-post","status-publish","format-standard","hentry","category-blog","category-business-blog"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/posts\/19801","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/comments?post=19801"}],"version-history":[{"count":1,"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/posts\/19801\/revisions"}],"predecessor-version":[{"id":19803,"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/posts\/19801\/revisions\/19803"}],"wp:attachment":[{"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/media?parent=19801"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/categories?post=19801"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/tags?post=19801"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}