Capital Gains Tax is a tax on the profit when you sell or dispose of something an ‘asset’ that’s increased in value after the available basic rate allowances and capital gains exemption. You will have to factor in other income you received such as employed earnings. It’s the gain you make that’s taxed, not the amount of money you receive.
This can be residential, commercial Property, assets, investments etc.
The current exempt sum for capital gains tax is £11,700 then the applicable gain over this attracts capital gains tax.
Typically this is then taxed at 18% for residential property and 28%. Other chargeable gains will be liable for 10% and 20% tax. Examples of other chargeable gains are
First rates above are for lower rate taxpayers the second is for higher rates taxpayers. Businesses pay the higher rate of 20% on other chargeable gains and 28% for residential property. Sole traders still can have 10% rate for sole trader or partnership gains applicable for entrepreneur relief.
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