Capital Gains Tax Advice
What is Capital Gains Tax?
A UK resident and domiciled individual is taxed on their worldwide income and gains. It also applies to Non-Residents with property in the United Kingdom (UK). There are special rules regarding reporting and payment deadlines for these Non-Residents Landlords.
A Capital Gain occurs when a chargeable person makes a disposal of a chargeable asset irrespective if they convert it into British pounds. The disposal date isn’t necessarily when you physically receive the money; it can be when contracts are exchanged like when purchasing residential property.
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.