Capital gains and self-assessment

3 mins

As if it wasn’t complicated enough, dealing with your self-assessment and your taxes with regard to everyday trading, you then have to deal with those rarer and more complex issues such as capital gains tax. Luckily for you, the experts at DSR Tax Refunds are here to make easy work of your capital gains issues with our helpful guide. Our friendly team are always here to help, so give is a call on 0330 122 9972 and you never know, we might be able to claim a sizeable tax refund on your behalf too!
 What are capital gains?
According to HMRC, when you sell a business asset that has increased in value since you purchased it for your business, you could be liable for Capital Gains tax. The tax is liable on the profit, or gain, that you made on the item – not on the whole sale value you received. So, if for example, you bought a painting for your business for £5,000 and later sold it for £7,500, you would be liable to pay Capital Gains Tax on the £2,500 gain you made from selling the asset.
If you sell something that is applicable for Capital Gains tax, you have to declare it to HMRC using the self-assessment system.
If you haven’t sold it, but have swapped it or given it away instead, you will still be liable for the tax unless you have given it to your spouse or to a charity. You would also need to pay Capital Gains tax if the item itself has been destroyed, but you receive compensation or an insurance payout to cover the item.
What kinds of things are liable for Capital Gains Tax?
According to HMRC, there are a range of assets that are liable to Capital Gains tax, including any personal possessions you might own that are worth more than £6,000 (except for cars). Property, any shares that aren’t in an ISA or PEP or any valuable antiques or jewellery items – these are the kind of personal possessions that you could be liable to pay Capital Gains Tax on if you sell them and make a profit.
In terms of business assets, HMRC considers such things as property and premises, registered trademarks, fixtures and fittings, plant and equipment or company shares as liable to Capital Gains Tax, if you sell them and make a profit.
Is there a tax-free allowance?
There is a tax-free allowance, which means that you don’t need to pay Capital Gains Tax on gains that are below this threshold, currently set at £12,300 (£6,150 for trusts).
How can DSR Tax Refunds help?
As a team of tax experts, we know just how complicated it can get when you are trying to work out whether you owe any Capital Gains Tax and that is why we can help you with our self-assessment service. We might also be able to lower your Capital Gains liability by including any losses you can gain tax relief on. Call our team of tax preparation specialists on 0330 122 9972 and let us take the strain out of your taxes – after all, you have better things to do with your time. Because of our expert knowledge in the field of taxation, you are in safe hands because we are the tax experts you can trust.
This page was last updated on 14/09/2020.

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