Capital Gains Tax Advice
What is Capital Gains Tax?
A Capital Gain arises when a capital asset is disposed of at a profit. UK residents and domiciled individuals are taxed on their worldwide income and gains. This also applies to Non-Residents with property in the United Kingdom (UK).
The disposal date isn’t necessarily when you physically receive the money; it can be when contracts are exchanged like when purchasing residential property.
From 6 April 2020, UK resident individuals disposing of residential property (where a tax charge arises) will need to report the disposal and pay any Capital Gains Tax within 60 days of completion. This has been the case for non-UK residents since April 2015. This now applies to non-UK resident individuals with regard to all types of land and property disposals (rebased at April 2019), unless an exemption applies.
Certain assets which have a useful life not exceeding 50 years are exempt from Capital Gains Tax unless they have been used in a trade like racehorses, computers, plant and machinery, which includes items such as clocks and watches.