Capital Gains Tax UK

Capital Gains Tax UK

This Article Contains

How much do you know about chargeable assets? Or what a chargeable person is? How about disposals of assets?
Understanding Capital Gains Tax UK can help you navigate this tax in the event you realise a gain or a loss.

Capital Gains Tax UK – Free Download

As well as our video explaining the basics of Capital Gains Tax we’ve prepared a free PDF for you to download. This explains the different types of chargeable assets as well as giving more clarification on what is and isn’t subject to capital gains tax here in the UK. 

Download your FREE guide here

Capital Gains Tax (CGT) Explained

The first and arguably most important thing to understand with CGT is the terminology used. A CGT arises when a chargeable person, makes a disposal of a chargeable asset. In laymans terms, if you sell an asset at a profit, you could be liable to capitals gain tax. All these terms are simplified and explained in our video below, and our free downloadable guide expands on what falls under the definition of a chargeable asset. A modern example of a chargeable asset are crypto assets

To provide a simple example, if you bought some listed shares at £1,000 and went on to dispose (sell) them for £50,000, this has yielded a gross profit of £49,000, known as a capital gain. The £49,000 is now subject to capital gains tax, at the current capital gains tax rates after the annual capital gains tax UK allowance has been applied. 

And there is a flip side to a capital gain, namely a capital loss. So let’s reverse the scenario above and assume you bought listed shares at £50,000, and unfortunately went on to dispose (sell) of them for £1,000. In reality, this can and does happen, and from a capital gains tax perspective, you have now realised a capital loss. This loss can be utilised to help reduce future CGT liabilities, so it’s not completely wasted. 

As a Qualified Accountant, I have been supporting and serving SME's, freelancer and entrepreneurs over 25 years. I am passionate about helping and empowering you to KNOW YOUR NUMBERS so you can manage and grow your business or personal finances to success.

Here’s what our clients say

Browse by category:

Categories

You might also like…

Ecommerce VAT Changes
Blog

Huge Ecommerce VAT Changes In 2021

Value added tax (VAT) has never been the most straight forward of taxes to understand and although the are many benefits of VAT registration, many …

Read More
Ecommerce Accounting
Blog

5 Ecommerce Accounting Requirements You Had Better Know

The world of ecommerce presents business owners with an ocean of opportunities, enabling online retailers to access markets and customers that they might have never …

Read More
VAT as a sole trader
Blog

Big Benefits Of Registering for VAT As A Sole Trader

VAT  (value added tax) is a tax on some goods and services. As a consumer it’s often something we overlook because the tax is somewhat …

Read More

Ready to get started?

Grow & Give Back

We believe in growth and giving back to our community. A percentage of every penny we make goes straight to our charitable partner Nishkam SWAT, serving the homeless in London

Aidhan is a trading style of Aidhan (Financial Services Ltd), a limited company registered in England under company number 04953002. Our registered office is: Aidhan, 199 Bishopsgate, London EC2M 3TY
Disclaimer – all our content is for general guidance only and does not constitute formal advice. We always recommend you take advice. 

© Aidhan Financial

2020