When might capital gains tax arise?
Typically, capital gains tax (CGT) may arise if you have sold or given away assets such as:
- Shares or investments
- Rented properties
- Second homes
- Your business or shares in your company
It’s never too soon to seek advice!
It is prudent to seek advice well in advance of disposing of any asset. There may be planning measures that could be put in place before a sale that could reduce the eventual CGT liability. Leaving things until after the sale will be too late.
If you sell an asset at a loss, then you should seek advice as to how this loss can be claimed.
Do you buy, renovate and then sell properties for profit. If so the profits may well be taxable as income rather than capital gains leading to a much higher tax charge than you thought? If property developing is your “hobby” even on a relatively small scale you should seek advice on your tax situation.