Capital Gains Tax (CGT)

Capital Gains Tax (CGT) is the tax you pay on any profit or gain that you make when you sell or dispose of certain assets.

For example, if you bought shares in January 2000 for £50,000 and then in January 2012 sold those same shares for £85,000 then you have made a gain of £35,000. This gain could possibly be taxed.

Are all assets liable to Capital Gains Tax when they are sold or disposed?

Not all assets are liable to CGT when you sell or dispose of them. It is important you get advice from a professional about any proposed sale or disposal before you make it.

Does Capital Gains Tax have to be paid if an asset is gifted to someone?

When you make a gift of an asset, depending on who the recipient is and what asset is gifted, there may be CGT payable on the gift.

An example of this is if you own a holiday home and decide to gift that home to your children then that gift would trigger a charge for CGT.

If an asset is inherited, will Capital Gains Tax have to be paid?

If you inherit assets, then you will not be liable for any CGT but could be liable for CGT if you later dispose of that asset.

In these circumstances, it is important that you obtain a valuation of the asset when it is inherited (i.e. at the date of death not the date of receipt of the asset), so you can then work out any gain or loss when it is subsequently sold.

Professional advice concerning any aspect of tax is always advisable as any errors can lead to interest charges and even penalties being levied by HMRC.

How we can support you

At Taylor Bracewell, our wills and probate solicitors in Doncaster and Sheffield can advise you on issues related to Capital Gains Tax, including advising you on CGT on inherited assets.

For more information call our law firms in Doncaster on 01302 341 414 and Sheffield on 0114 272 1884 to arrange an appointment today.

For more details on other areas of tax, click the links below: