A capital gain will arise when a chargeable asset is disposed of for a profit over and above the original cost. Not all assets are subject to capital gains tax. Examples of non chargeable assets include: ‘Wasting Chattels’ which are assets which are considered to have a useful life of no more than 50 years,…
Tag Archives: capital gains tax
20
Apr
Apr
For the purpose of this blog, I will use examples of repairs and enhancements relating to residential properties as the examples will be relatable to many people and hopefully easier to understand. What is a repair? HMRC considers a ‘repair’ as the restoration and maintenance of pre-existing features of an asset by bringing the asset…
A phased reduction in the capital gains tax (CGT) annual exemption is on the horizon. Currently £12,300, the exemption falls to £6,000 from6 April 2023. A further reduction takes effect from 6 April 2024, when it drops to £3,000. The move is expected to raise an additional £25 million in tax revenue in 2023/24 alone,…
21
Aug
Aug
The Office of Tax Simplification (OTS) have undertaken a detailed review of Inheritance Tax (IHT), which is perceived by many as a complicated tax. The government normally takes account of OTS recommendations and their report is likely to lead to future changes to the rules. We will keep you posted as the changes may necessitate…
