When you dispose of an asset that has increased in value you may become liable to capital gains tax.
There are many situations where an asset is deemed to have been disposed of, e.g. when you…
Sell the Asset.
Gift the asset to another person.
Exchange it for something else.
Receive compensation for something that has been broken or stolen.
You pay capital gains tax on the difference between what you sell an asset for and the assets base cost (usually what you paid for it).
Personal Possessions in Excess of £6,000 (excluding your car).
Property other than your own residence.
Shares if not wrapped up in an ISA or PET plan.
The good news is that each UK taxpayer has an allowance for CGT separate from the personal allowance for income tax. Often this allowance is sufficient to cover small gains and no tax is chargeable.
Capital Gains Tax is a very complex area so it is essential you get professional advice - We would be happy to help.TALK TO US ABOUT CGT