Capital Gains Tax
Capital Gains Tax is the tax levied on anyone who makes a gain on disposing of items of significant value. This is an issue which needs to be considered when preparing your personal tax return.
Every-day items are generally excluded and there are certain reliefs, thresholds and annual allowances so that only significant transactions are included.
Everyone needs to remember that all gains have to be disclosed to their Accountant in case tax is applicable. It is better to talk about anything you have sold when you provide your paperwork, and then Astons Accountants can advise you on whether or not the amount is relevant.
The most common examples of assets that can trigger a charge to Capital Gains Tax are properties, shares and businesses, all of which can often produce big gains.
The allowances and reliefs that can be claimed have changed over the years and so it can often help to seek advice before disposing of an asset as the timing can be critical. Tax planning is always beneficial, but it means remembering to talk things through with Astons Accountants before the sale takes place.
It may be the case that if a transaction can be “managed”, or spread over time, there is the potential to minimise, or even eliminate the tax burden.