{"id":5411,"date":"2023-10-19T08:52:26","date_gmt":"2023-10-19T08:52:26","guid":{"rendered":"https:\/\/www.bainesjewitt.co.uk\/blog\/?p=5411"},"modified":"2023-10-19T08:52:27","modified_gmt":"2023-10-19T08:52:27","slug":"the-impact-of-capital-gains-tax-in-estate-planning","status":"publish","type":"post","link":"https:\/\/www.bainesjewitt.co.uk\/blog\/the-impact-of-capital-gains-tax-in-estate-planning\/","title":{"rendered":"The impact of Capital Gains Tax in estate planning"},"content":{"rendered":"

Capital Gains Tax (CGT) is one of those terms that often elicits a groan from private clients, but understanding its intricacies can be incredibly beneficial in the long run.\u00a0<\/span>\u00a0<\/span><\/p>\n

CGT has, after all, a significant influence on your estate planning and the gifting of your assets to loved ones.\u00a0<\/span>\u00a0<\/span><\/p>\n

This article aims to provide a comprehensive overview of how CGT affects these areas, and what you, as a private client, need to be aware of.<\/span>\u00a0<\/span><\/p>\n

What is Capital Gains Tax?<\/span><\/b>\u00a0<\/span><\/p>\n

At its core, CGT is levied on the profit made from selling or transferring an asset that has increased in value.\u00a0<\/span>\u00a0<\/span><\/p>\n

The tax is calculated on the gain you make compared to the price at which you purchased it, rather than the total amount you receive.\u00a0<\/span>\u00a0<\/span><\/p>\n

Assets subject to CGT can range from property and shares to collectables like artwork.\u00a0<\/span>\u00a0<\/span><\/p>\n

The rate of CGT varies depending on your overall income and the type of asset sold.<\/span>\u00a0<\/span><\/p>\n

If you are on a higher or additional rate of Income Tax, you\u2019ll pay:<\/span>\u00a0<\/span><\/p>\n