Contents
- 1. Capital Gains Tax: an overview
- 2. What assets does Capital Gains Tax apply to?
- 3. Capital Gains Tax exemptions
- 4. How much Capital Gains Tax do I need to pay?
- 5. How to calculate Capital Gains Tax
- 6. How to pay Capital Gains Tax to HMRC
- 7. Capital Gains Tax deadline
- 8. Do I pay Capital Gains Tax on inheritance?
- 9. Claiming for a loss
- 10. Got a question about tax?
What is Capital Gains Tax?
September 6, 2022Capital Gains Tax: an overview
What assets does Capital Gains Tax apply to?
Capital Gains Tax exemptions
Do I need to pay Capital Gains Tax if I’m selling my business?
How much Capital Gains Tax do I need to pay?
Capital Gains Tax on residential properties | Capital Gains Tax on other assets | |
---|---|---|
Basic rate taxpayers | 18% | 10% |
Higher rate taxpayers | 28% | 20% |
How to calculate Capital Gains Tax
How to pay Capital Gains Tax to HMRC
Capital Gains Tax deadline
Date of sale | When you must report and pay |
---|---|
If you sold a residential property in the UK with a completion date on or after 27th October 2021 | Within 60 days |
If you sold a residential property in the UK with a completion date between 6th April and 26 October 2021 | Within 30 days |
If you have other gains to report | In the tax year after you sold or disposed of an asset if you file a Self Assessment tax return. If you're eligible, you may be able to use the 'real time' Capital Gains Tax service to report by 31st December in the tax year after the sale. |
Do I pay Capital Gains Tax on inheritance?
What about gifts?
Claiming for a loss
Can I claim Capital Gains Tax relief?
Relief | Description | Eligibility |
---|---|---|
Business Asset Disposal Relief | Pay 10% Capital Gains Tax on qualifying profits if you sell all or part of your business (instead of the normal rates) | For sole traders, business partners or those with shares in a ‘personal company' |
Business Asset Rollover Relief | Delay paying Capital Gains Tax when you sell or dispose of some types of asset if you replace them | Buy the new asset within 3 years of disposing of the old one. Use the old and new assets in your business |
Incorporation Relief | Delay paying Capital Gains Tax when you transfer your business to a company | Transfer all your business and its assets (except cash) in return for shares in the company |
Gift Hold-Over Relief | Pay no Capital Gains Tax if you give away a business asset — the person you gave it to pays tax when they sell it | You used the business asset for trading as a sole trader or partner |