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When is Capital Gains Tax payable

Notwithstanding any of the comments that follow, an individual is allowed to make tax-free capital gains of £11,700 during 2018-19.

There are also a number of circumstances when a disposal does not create a taxable gain. These include:

The sale of personal assets worth less than £6,000.
Gifts to your spouse or civil partner.
Gifts to a charity.
Gains when you cash in ISAs or PEPs.
Disposal of certain UK government gilts and premium bonds.
Betting, lottery or pools winnings.
Any personally owned car.

If you live abroad, you will have to pay tax on gains you make on residential property in the UK even if you are non-resident for tax purposes. You do not pay Capital Gains Tax on other UK assets, for example shares in UK companies, unless you return to the UK within 5 years of leaving.

Even if gains are taxable there may be reliefs you can claim to reduce or defer any Capital Gains Tax that may be due. These reliefs include:

Entrepreneurs’ relief

Business asset rollover relief

Incorporation relief

Gift hold-over relief

Circumstances when these reliefs may be of use include:

When you sell your business

When you reinvest the proceeds from a chargeable disposal into a new asset

When you change a sole trader or partnership business into a limited liability company, and

If you give away a business asset.

If you are likely to dispose of, or re-organise, any assets in this way please contact us to discuss any Capital Gains Tax implications.

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