Capital Taxes
Factsheets > Capital Taxes
As you will be aware, the Chancellor surprised everyone in his Pre Budget Report on the 9 October 2007 with major changes to the CGT regime. This factsheet outlines the main proposals, which may be subject to amendment.
A capital gain arises when certain capital (or 'chargeable') assets are sold at a profit. The gain is the sale proceeds (net of selling costs) less the purchase price (including acquisition costs). The taxation of capital gains has been significantly revised from 6 April 2008. This factsheet deals with the current position.
Property Investment Tax Aspects
There were a number of significant changes to the CGT system from April 2008. Further details of how CGT operates are outlined in the Capital Gains Tax factsheet.
Stamp Duty Land Tax (SDLT) was introduced on 1 December 2003 and replaced Stamp Duty in respect of land transactions. Stamp Duty was an old tax which required the existence of a document, such as a conveyance. SDLT is a very different type of tax and the new regime is intended to be robust. This factsheet sets out some of the basic things you need to know about the tax.
Trusts enable assets to be given away whilst still retaining some control over them. Income can be paid to different persons with the capital ultimately going to other persons.
Capital Gains Tax Taper Relief
A fundamental reform of the capital gains tax (CGT) system was made in 1998 for individuals, trustees and personal representatives. A number of further changes have been made since.
Inheritance tax (IHT) is levied on a person’s estate when they die, and certain gifts made during an individual’s lifetime. Most gifts made more than seven years before death will escape tax. Therefore, if you plan in advance, gifts can be made tax-free: the result can be a substantial tax saving.
An Introduction to Stamp Duty and Land Tax
Stamp Duty Land Tax (SDLT) was introduced on 1 December 2003 and replaced Stamp Duty in respect of land transactions. Stamp Duty was an old tax which required the existence of a document, such as a conveyance. SDLT is a very different type of tax and the new regime is intended to be robust. This factsheet sets out some of the basic things you need to know about the tax.
Capital Gains Tax and the Family Home
The capital gains tax (CGT) exemption for gains made on the sale of your home is one of the most valuable reliefs from which many people benefit during their lifetime. The relief is well known: CGT exemption whatever the level of the capital gain on the sale of any property that has been your main residence. In this factsheet we look at the operation of the relief and consider factors that may cause it to be restricted.
Inheritance tax (IHT) was introduced almost 20 years ago and broadly charges to tax certain lifetime gifts of capital and estates on death.
