{"id":552,"date":"2020-07-03T15:46:55","date_gmt":"2020-07-03T15:46:55","guid":{"rendered":"https:\/\/www.accountly.co.uk\/?p=552"},"modified":"2020-07-07T15:22:07","modified_gmt":"2020-07-07T15:22:07","slug":"capital-gains-tax","status":"publish","type":"post","link":"https:\/\/www.accountly.co.uk\/capital-gains-tax","title":{"rendered":"Capital Gains Tax Explained"},"content":{"rendered":"
Capital Gains Tax (CGT<\/strong>) is a form of tax on any profit (gain) you make from disposing of all or part of a business asset that has increased in value under your ownership.<\/p>\n You pay business CGT if you\u2019re a self-employed sole trader<\/a> or in a partnership<\/a>. If you own an organisation such as a limited company, you will pay Corporation Tax on profits from selling assets instead.<\/p>\n You are not only charged the tax on an item you sell but also if you give it away as a gift, transfer it to someone else, swap it for something else or receive compensation for it (for instance if you have been awarded an insurance payout if it was lost or destroyed).<\/p>\n The gain is calculated by working out the difference between what you paid for your asset and what you sold it for, or by comparing to the current market value if it is gifted.<\/p>\n