Capital Gains Tax for many is a complicated issue.  While it’s seen as a ‘voluntary tax’ – the penalties for trying to avoid it are severe, if not dealt with properly.

Capital Gains Tax is also one of the most misunderstood types of tax some people have to deal with, at some stage in their lives. Due such widespread misconception and confusion, many people end up either receiving a shocking tax bill out the blue, or quite simply end up paying too much from the start. CGT is complicated because in many cases it’s possible to limit the amount you have to pay with accurate forecasting / offsetting.  With Firstax by your side – you can limit what you need to pay by taking advantage of our expertise.

What is Capital Gains Tax?

Capital Gains Tax (CGT) is a tax that’s paid on Capital Gains, or profit. This is situation dependant on either being personal assets or company assets.

Capital Gains Tax by definition, is defined as a tax levied on profit from the sale of a property or an investment. The definition of Capital Gains Tax is quite often the cause of confusion. As mentioned, Capital Gains Tax is a tax that is payable on profit – over £6,000.

It’s important to get financial advice when it comes to Capital Gains Tax due to the many complicated facets and severe liabilities, depending on individual circumstance. Get the right advice and make complications of CTG Tax a thing of the past!

What do I pay Capital Gains Tax on?

If a sole trader or personal owner you can sell assets up to the value of £11,100 at present and only pay CGT on amounts above.

CGT is complicated in that firstly you pay based on the capital gain in value since the acquisition of the asset, and while the tax is either 18% or 28% depending on which rate of tax you pay – there are other aspects to consider such as one’s annual tax free exemption, whether or not you are married and a few other considerations.

Taking all these into consideration, this is why we always recommend you try to speak to a financial expert.  With our experience, we can help you reach a satisfactory outcome.


Capital Gains Tax Advice

Firstax has been helping clients throughout Scotland for over three decades. Providing expert advice and support throughout all areas of CTG Tax including;

  • Calculation and preparation of Capital Gains Tax
  • CTG Tax relief advice and support including; Entrepreneur’s Relief, EIS (Enterprise Investment Scheme) deferral relief
  • Renewal of property ownership in order to minimise tax liability when sold
  • Advice and support on efficient divorce settlements, avoiding unnecessary tax liabilities

Capital Gains Tax albeit complex in areas, does have a number of tax reliefs available so making sure you fully understand is vital to avoiding paying far more than you need to.


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