{"id":4921,"date":"2022-11-08T12:57:58","date_gmt":"2022-11-08T12:57:58","guid":{"rendered":"https:\/\/www.bainesjewitt.co.uk\/blog\/?p=4921"},"modified":"2022-11-08T12:58:00","modified_gmt":"2022-11-08T12:58:00","slug":"capital-gains-tax-what-do-you-need-to-know","status":"publish","type":"post","link":"https:\/\/www.bainesjewitt.co.uk\/blog\/capital-gains-tax-what-do-you-need-to-know\/","title":{"rendered":"Capital Gains Tax: What do you need to know?"},"content":{"rendered":"<p>Capital Gains Tax (CGT) is a tax applied on the profit you receive when disposing of an asset.<\/p>\n<p><!--more--><\/p>\n<p>You are not taxed on the amount of money you receive, but on the gain you make.<\/p>\n<p>For example, if you bought something for \u00a310,000 and sold it for \u00a320,000, you\u2019ve made a gain of \u00a310,000, and that is what will be taxed.<\/p>\n<p><strong>What do you pay CGT on?<\/strong><\/p>\n<p>CGT applies when you dispose of \u2018chargeable assets\u2019, including:<\/p>\n<ul>\n<li>Personal belongings\u00a0worth \u00a36,000 or more<\/li>\n<li>Property that\u2019s not your main residence<\/li>\n<li>Your main home if you\u2019ve\u00a0let it out or used it for business<\/li>\n<li>Any shares\u00a0that are not in an\u00a0ISA\u00a0or\u00a0PEP<\/li>\n<li>Business assets.<\/li>\n<\/ul>\n<p>If you jointly own the asset with somebody else, you must pay CGT on your share of the gain.<\/p>\n<p>If you are gifting the asset to someone, you may still need to pay CGT, but this is not usually the case if you are gifting\u00a0to your spouse, civil partner, or a charity.<\/p>\n<p>You do not pay CGT on certain assets, including any gains you make from:<\/p>\n<ul>\n<li>Cash<\/li>\n<li>Private cars<\/li>\n<li>Assets in ISAs\u00a0or\u00a0PEPs<\/li>\n<li>UK Government gilts and Premium Bonds<\/li>\n<li>Betting or lottery winnings.<\/li>\n<\/ul>\n<p><strong>Record keeping<\/strong><\/p>\n<p>To determine your gains, you need to collect records which you must keep for at least a year following the\u00a0Self-Assessment deadline.<\/p>\n<p>If you filed your tax return late, or HM Revenue and Customs (HMRC) have launched a check into your return, you\u2019ll need to keep them for longer.<\/p>\n<p>For businesses, records must be kept for five years after the deadline.<\/p>\n<p><strong>How much will you pay?<\/strong><\/p>\n<p>The rate you pay will differ based on the amount of your total taxable income and the type of asset you are disposing of.<\/p>\n<p>Across the 2020\/2021\u00a0tax year, the basic rate on residential property gains was 18 per cent and 10 per cent on all other assets.<\/p>\n<p>The additional rate of CGT was 28 per cent on residential property and 20 per cent on all other assets.<\/p>\n<p><strong>Need help on CGT and other tax-related matters? Contact us today.<\/strong><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Capital Gains Tax (CGT) is a tax applied on the profit you receive when disposing of an asset.<\/p>\n","protected":false},"author":2,"featured_media":4923,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,120,25,7],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/4921"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=4921"}],"version-history":[{"count":1,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/4921\/revisions"}],"predecessor-version":[{"id":4922,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/4921\/revisions\/4922"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media\/4923"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=4921"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=4921"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=4921"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}