IFA Bedford, Bedfordshire ~ Financial Adviser Bedford, Bedfordshire ~ Financial Planning Bedford, Bedfordshire ~ Financial Advice Bedford, Bedfordshire ~ Pensions Advice Bedford, Bedfordshire ~ mortgage advisers Bedford, Bedfordshire

left webpage shadowright webpage shadow
Company logo
Financial Adviser

Capital Gains Tax

Capital Gains Tax Allowances, Liabilities & Reliefs

In the tax year 2017/2018, an individual's CGT allowance is £11,300 (2016/17 - £11,100).

This means you do not have to pay tax on gains from buying and selling shares or other investments during the tax year up to that amount. You do not normally have to pay tax on any gain you make when you sell your main residence.

2017/2018 2016/2017
For standard rate taxpayers(1) 10% 10%
For trustees and higher/additional rate taxpayers(1) 20% 20%
Annual exempt amount - individuals £11,300 £11,100
Annual exempt amount - trusts £5,650 £5,550
Entrepreneurs' relief lifetime limit £10,000,000 £10,000,000
Entrepreneurs' rate 10% 10%

(1). These rates do not apply to transactions involving residential property (the sale of second homes) or carried interest (the share of profits or gains that is paid to asset managers). CGT rates for these transactions remain at 18% (standard rate taxpayers) and 28% (higher rate taxpayers).

If you have used your CGT allowance, don't forget your Individual Savings Account (ISA) allowance. Both a 'Cash ISA' and a 'Stocks and Shares ISA' can shelter capital gains on investments, for example unit trust holdings, worth up to £20,000 per year.

From 6th April 2008 Taper Relief was removed and a new relief called 'Entrepreneurs' relief' was introduced to reduce the Capital Gains Liabilities on the disposal of certain business assets.

CGT is a tax on capital 'gains'. If when you sell or give away an asset it has increased in value, you may be taxed on the 'gain' (profit). This doesn't apply when you sell personal belongings worth £6,000 or less or, in most cases, your main home.

When do I have to pay CGT?

You may have to pay CGT if, for example, you:

  • sell, give away, exchange or otherwise dispose of (cease to own) an asset or part of an asset
  • receive money from an asset - for example compensation for a damaged asset

You don't have to pay CGT on:

  • your car
  • your main home - provided certain conditions are met
  • ISAs
  • UK Government gilts (bonds)
  • personal belongings individually worth £6,000 or less when you sell them
  • betting, lottery or pools winnings
  • money which forms part of your income for income tax purposes

Important Considerations:

  • if you are married or in a civil partnership and living together you can transfer assets to your husband, wife or civil partner without having to pay CGT
  • you may not give assets to your children or others or sell assets to them cheaply without having to consider CGT
  • if you make a loss you may be able to make a claim for that loss and deduct it from other gains, but only if the asset normally attracts CGT
  • if someone dies and leaves their belongings to their beneficiaries, there is no CGT to pay at that time - however if an asset is later disposed of by a beneficiary, any CGT they may have to pay will be based on the difference between the market value at the time of death and the value at the time of disposal

INFORMATION IS BASED ON OUR CURRENT UNDERSTANDING OF TAXATION LEGISLATION AND REGULATIONS. ANY LEVELS AND BASES OF, AND RELIEFS FROM TAXATION, ARE SUBJECT TO CHANGE.

THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE TAX PLANNING.

TAX TREATMENT IS BASED ON INDIVIDUAL CIRCUMSTANCES AND MAY BE SUBJECT TO CHANGE IN THE FUTURE.


General Enquiry
investment TV button link
rss Financial times example feed

Company address:
Twigden Asset Management Ltd, King William House, 46 Harpur Street, Bedford, Bedfordshire, MK40 2QT
T: 01234 270074
F: 01234 327331

Email: debbie@twigdenasset.co.uk

Registration address as company address
Registration number: 4691087
Registered in: England & Wales

Twigden Asset Management Ltd is authorised and regulated by the Financial Conduct Authority.

Twigden Asset Management Ltd entered on the Financial Services Register (www.fca.org.uk/register) under reference 223678.

The information contained in this web site is subject to UK regulatory regime and is therefore restricted to consumers based in the UK.

Please note that the information contained within this web site does not represent individual financial advice. If you require advice or further information this may be obtained by contacting Twigden Asset Management Ltd.

FCA does not regulate some forms of IHT planning.

Your home may be repossessed if you do not keep up repayments on your mortgage, think carefully about securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

The value of investments can fall as well as rise. Past performance is not a guide to future performance.

Telephone: 01234 270074 | debbie@twigdenasset.co.uk

Designed & developed by Web Pro IT © 2009

Life insurance quotes Bedford, Bedfordshire ~ best mortgage rates Bedford, Bedfordshire ~ Financial Advice Bedford, Bedfordshire ~ pensions advice Bedford, Bedfordshire ~ retirement planning Bedford, Bedfordshire ~ tax saving advice Bedford, Bedfordshire ~ investment advisers Bedford, Bedfordshire