Category Archives: Tax Planning

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...

Carrington Blake Accountancy Monthly Newswire – Tax E-News

CHRISTMAS IS THE TIME FOR GIVING; Those thinking about making gifts at Christmas should take advantage of the various inheritance tax (IHT) exemptions and reliefs available to them. Note that certain gifts can also have capital gains tax (CGT) implications. THE IHT ANNUAL EXEMPTION - USE IT OR LOSE IT! Although not particularly generous at £3,000 per donor per annum if this annual IHT exemption is not used by 5 April it is lost, although it is possible to carry the allowance forward one year if unused. This means that if the annual allowance for 2017/18 was not used an individual may make gifts of up to £6,000 in 2018/19. Where the gifts to individuals exceed the annual exemption there may still be no inheritance tax to pay if they survive for 7 years following the gift or...
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