Capital Gains Tax is the tax levied on the gains you make when you dispose of an asset or upon maturity of an investment, for example, when you:
- sell it
- give it away as a gift
- transfer it to someone else
- exchange it for something else
- receive compensation for it (for example if you receive an insurance payout when an asset has been destroyed)
You may also have to pay capital gains tax if you are selling or transferring a business.
The legislative framework for capital gains tax is complex, and there are a number of exemptions which could, if applied correctly, lead to significant tax savings. Generally, losses made on asset disposal can only be offset against gains made on asset disposal, although there are specific examples where losses can be offset against income. Effective tax planning can help reduce your total capital gains tax liability or defer the tax payable altogether.
We can prepare your CGT computations on your behalf, and advise you regarding any tax relief you may be able to claim or to report any tax liability due.
Contact our tax team for advice regarding Capital Gains Tax.