As any accountants in Bushey would be able to tell you, capital gains are the profit that you make on selling any capital assets. These assets can be anything from an old house, to an antique car or jewelries or shares and stocks or even to a collection of vintage clothes. HMRC looks to tax you on any of the gains that you make upon selling any such assets. In essence, they need a portion of the profit that you make upon selling any of the aforementioned assets that you have come to possess.
Capital gains and the tax associated
When it comes to capital gain, there are two important things that one must keep in mind.
- One of the things is that, you are required to pay tax on the profit that you make on selling an asset, not on the total selling price of the asset being sold.
- Another factor is that not every profit that you make by selling an asset is taxable under capital gain tax—you need to know that there are certain exceptions when it comes to capital gain.
When you are required to pay the capital gain;
It has to be kept in mind that you only need to make the capital tax only upon selling;
- Your personal possessions having £6,000 or more worth, with the only exception being a care you are selling.
- Any properties in the likes of Buy-to-Let, holiday homes, which are not the residence you live in.
- The main residence you live in. However, you are only required to pay the Capital Gains Tax only on the gain when you let it out and the let-out is used for business purpose or it comes to 5,000 square meters or more.
- The shares that are not in any Personal Equity Plan or an Individual Savings Account.
- The units you possess in a unit trust.
- Certain bonds except Qualifying Corporate and Premium Bonds.
When you are not required to pay the capital gain;
As discussed previously, you are not required to pay the capital gains tax in the following scenarios;
- Personal Equity Plan
- Individual Savings Account
- UK government gilts inclusive of Premium Bonds
- Qualifying Corporate Bonds
- Any winnings from lottery, betting or pools
In order to understand and make the right amount of tax that you owe to HMRC, you need to get the help of any professional accountants in Bushey or someone who you can rely on to help you with every related activity. This is where DNS Associates can help you with each and every need you have with taxation and accounting. Even since its inception, DNS Associates have tremendous care and responsibility in every assignment they have taken to provide the best and most reliable service to their clients. Whatever the requirements of the clients may be, DNS Associates have toiled day in and day out to ensure the clients are provided with top-notch service deliverance and quality. With their unparalleled experience and adequately trained staff they have become one of the best professional accountants who can provide affordable services for all.