Capital Gains Tax

updated: January 21, 2010

You may have to pay Capital Gains Tax (CGT) when you dispose of an asset. You make a ‘disposal’ when you sell, give away, or receive a capital sum from your ownership of an asset. Virtually all forms of asset, which can yield a capital sum, are subject to CGT unless they are specifically exempt.

Once the gains for the year have been computed (net of any losses), the annual exemption is deducted.

However, if you have unused personal allowances for income tax in the year in which you make a capital gain, you cannot set them off against the gain, they simply go to waste.

Capital gains are assessed over the tax year and the due date for the payment of CGT is 31 January following the tax year. If, therefore, you made a gain in July 2008 any tax due is payable by 31 January 2010.

A range of exemptions and reliefs may apply.

To obtain further information please click on one of our pdf Guides to Capital Gains Tax.

Part 1 of the Guide deals with what Capital Gains Tax is, whether it will affect you and the way that it is calculated

Part 2 of the Guide deals with tax-planning ideas for reducing your potential liability for Capital Gains Tax.