What is Capital Gains Tax and how can the Helpline help you? It is a tax on the gain when you dispose of or sell something at a value higher than the actual price. It is the gain that is taxed, and it mostly happens with investments but also applies to personal property.
What Is The Tax Paid On?
The Tax is paid on the gain when you sell chargeable assets such as;
• business assets.
• personal possessions worth £6,000 excluding your car.
• property apart from your main home.
• shares that are not in a PEP, NISA or ISA.
You might be in a position to reduce any tax you pay by claiming a relief based on the asset. The tax is only paid when your overall gains are above an annual tax-free allowance.
In the case of death and you inherit an asset; Inheritance Tax is usually paid by the estate of the person who has passed on. When you dispose of the asset in future, you only have to calculate if you need to pay Capital Gains Tax. To know more about what you don’t pay tax on, or when you don’t pay tax, contact The Helpline for a comprehensive guide.
CGT Helpline 0300 200 3300
How to Work Out If You Need To Pay.
Calculating your total taxable gains:
a) Calculate the gain for every asset you have disposed of in the tax year (a tax year runs from 6 April to 5 April the subsequent year).
b) Combine the gains for each asset
c) Deduct every allowable loss.
If the taxable gains exceed your allowance; you will need to report and pay the tax due. Using the tax Calculator can be helpful when working out how much tax to pay.
Account and Pay.
Any Capital Gains reported needs to be paid in a Self Assessment tax return. You must include the computation of every capital gain or loss in your report. You will need data from your records on the costs and the proceeds for every asset. Additionally, you are required to include other information such as any reliefs you are entitled. You can get assistance with your tax return from a tax adviser, accountant or you can use the Capital Gains Contact Number.
What If You Make Capital Losses?
Capital losses from investments and not from the sale of property are deducted from the gains you made in the same tax year. You can deduct losses that were not utilised during the preceding year if your entire taxable gain is still beyond the tax-free allowance. If your gain to the tax-free allowance is decreased, you can carry forward the residual losses to the upcoming year.
Tax Advice Line 0300 200 3300
HM Revenue and Customs (HMRC):
|Office Number||0300 200 3300|
HMRC Opening Hours:
|Monday to Friday.||8.00am to 8.00pm|
|Saturday.||8.00am to 4.00pm|
HMRC Office Postal Address:
|Revenue & Customs||Capital Gains Tax Queries.
HM Revenue and Customs.