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What is Capital Gains Tax?

Capital Gains Tax comes into play when you make a profit from selling something you own. The important point to remember is that the tax is calculated on the profit you make, and not the amount you sold it for. As the name suggests, it’s all about the gain! So, Capital Gains Tax is essentially a tax on any profit you made on the disposal of an asset and it applies to most assets when they’re sold. There are some exceptions, however – for example, your car, your main place of residence if you own your home, and personal possessions sold for £6,000 or under are all exempt. You don’t pay Capital Gains Tax when you sell your car unless you use it for business. There are also some complex rules for assets with an expected life...

Importance of Completing a Self-Assessment Form

Permanent workers are usually paid via Pay As You Earn (PAYE). PAYE ensures that the employee's income tax, national insurance, and student loan repayments have been deducted before the employee receiving their pay. However, self-employed individuals must pay to ensure that they have paid their taxes, national insurance contributions, and student loan repayments. If you are self-employed you must complete a self-assessment form to figure out what you owe and ensure that you have made payments before the deadline.

What Your Self-Assessment Covers

self-assessment The tax year runs from April 6th through to April 5th - if you have earnt over the tax threshold you'll need to pay a percentage of tax on earnings over this percentage. For the 2018/19 tax year, everyone receives a personal allowance of £12,500, earnings of £12,501...