Calculate UK capital gains tax on asset sales.
Understanding capital gains tax and investment taxation. Capital gains tax applies when selling assets above purchase price. UK residents pay CGT on profit: sale price minus purchase price equals gain. Different rates apply: basic rate taxpayers 10%, higher rate 20%. Annual exemption £3,000 (2024/25) excludes gains below threshold from taxation. Married couples/civil partners each get own exemptio...
n (£6,000 combined). Losses offset gains in same tax year or carried forward indefinitely. Trading considerations: regular asset sales suggest trading activity (income tax applies instead). Holding period irrelevant for CGT (unlike US long-term treatment). Property disposal rules: main residence exempt, buy-to-let properties fully taxable. Chattels (personal items) under £6,000 exempt automaticall...
y. Share disposal: average cost method or specific identification. Investment funds: gains within fund unrealised (realised only on fund sale). Inheritance considerations: stepped-up basis at death (no CGT on inherited assets). Trusts face complicated rules: different rate (20% even for basic rate beneficiaries). Non-resident status affects CGT: UK non-residents pay CGT on UK property only (as of ...