Capital Gains Tax
|The Capital Gains Tax (CGT) annual exempt amount will rise to £11,700 for the 2018/2019 tax year.|
|The introduction of the new ’30 day window’ between the date an asset is sold and the date the CGT is due for payment has been delayed until April 2020.|
|From 6 April 2019 onwards legislation may be introduced which would see non-UK resident individuals chargeable to CGT on the disposal of UK non-residential property.|
While CGT announcements in this year’s Budget were scarce, the following applies:
The CGT rates in place from 6 April 2018 are as follows:
- basic rate taxpayer 10%
- higher rate taxpayer 20%
However, there is an 8% ‘surcharge’ added for gains on residential property.
This means if you sell a property not covered by Private Residence Relief, you will be subject to CGT at the rates of 18% (basic rate taxpayer) or 28% (higher rate taxpayer).
The annual exempt amount, which is the amount of gain that a person can make on the disposal of an asset before they have to pay any CGT, is set at £11,300 for the current 2017/2018 tax year. This will rise to £11,700 for disposals made in the 2018/2019 tax year.
Planning should be undertaken before disposing of any assets to ensure that the annual exemption and any other available reliefs are taken advantage of. Please contact a member of our tax team on 01228 711888 if you have any queries or are thinking of making a disposal.