Capital gains tax is the tax on the profit made when you sell or give away an item. Exceptions to this are items of tax free allowance. For personal sales of items over £6,000 you may need to pay capital gains tax. These items may include jewellery, vases, or paintings. There are different rates of capital gains tax which must be paid on different values of items. Therefore, it is important to seek legal advice when looking to reduce your liability.
Capital gains tax allowances will not be applied to certain items such as items with:
- A limited life span that are not used for business purposes;
- Selling your private car;
- Any lottery or betting winnings; or
- Personal injury compensation.
The process of calculating your gains can be very complicated. Certain costs can be deducted including:
- Fees of advertising or valuing;
- Improvement costs; and
- VAT (only if not reclaimed).
If you are seeking advice on capital gains tax, please contact our tax team. We have years of experience in the field and are happy to listen to your enquiries and advise you accordingly once we are instructed.
What do I do next?
Contact us online or speak to one of our dedicated specialists on 0207 998 7777 for a free initial consultation. With our vast experience in the field, our bilingual speaking team will work with you to ensure this process runs as smooth as possible. All information you provide us with is treated with the utmost confidentiality.
We will contact you no later than the next working day to arrange a meeting at our offices in London W1 to advise on the agreement.