Capital Gains Tax

The disposal of an asset for a profit may lead to a charge to Capital Gains Tax. The asset can be shares in a company, land & property, or plant machinery and equipment other than cars. The tax does not have to be paid if the gain is less than the annual allowance, currently £12,300 but may still have to be reported to HM Revenue & Customs.

The sale of a private residence on which capital gains tax is due must be reported within 60 days and the tax due paid at the same time. Note: the CGT annual allowance is in addition to the income tax annual allowance.