Capital Gains Tax. is levied on the capital profit made on the sale of assets acquired after 20 September, 1985. It is only levied when an asset is disposed of and cost value is adjusted for inflation. The family home is generally exempt. The rate of tax payable depends on your marginal tax rate in the year of sale (i.e. financial year to 30 June). After 1/10/99 only 50% of gain taxed if the asset is held for longer than twelve months, and there is no inflation allowance as with previous method until that date. Consult your accountant/financial planner on ways and means of minimising any capital gains tax liability.
Capital Gains Tax. (added July 2002) Capital Gains Tax (CGT) was introduced in 1965. Individuals, trustees and personal representatives are potentially liable. Most of the CGT rules apply to Companies. However, Companies do not pay CGT, but instead pay corporation tax on chargeable gains on the disposal of assets. It is charged on total chargeable gains in the tax year, after certain deductions (if available), e.g. allowable losses, taper relief and the annual exemption. The main CGT rules are contained in the Taxation of Chargeable Gains Act 1992. UK residents and ordinary resident individuals are liable on all gains, wherever they arise. However, if they are also non-UK domiciled, they are generally only liable to CGT on gains brought into the UK.