Capital gains tax arises on the sale of a chargeable asset. Some assets, such as cars, are exempt from capital gains tax.
When an asset is sold for more than it is purchased for, this results in a gain. The gain is chargeable to Capital Gains Tax (CGT).
Most individuals are entitled to a tax free annual exemption each year. Should the gain be greater than the annual exemption then it will be chargeable to Capital Gain Tax (CGT).
Principal Private Residence Relief (PPR) is available to individuals who sell a property in which they have lived in as their main residence.
The relief exempts the part of the gain which relates to the period of occupation during which the property was the sellers main residence.
There are also period of ownership in which the property was not occupied by the seller however under certain circumstances, these can also be exempt.
We can help you to review the sale of your main residence and identify the full relief available to you on the sale of your home.
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Bookkeeping, Tax Return Preparation, Tax Advice and other taxation services in Watford, Herts, UK.
Fair Fee Tax Return is the trading name of Littlebox Accounting Solutions Ltd, member of and licensed by the Association of Accounting Technicians (AAT). Registered Office: 39 Fuller Road, Watford, Hertfordshire, WD24 6QH. Registered in England, Company Number: 08463254.
Tax Accountants in Watford, Herts, UK.