CAPITAL GAINS TAX

Capital Gains Tax arises when capital assets are sold or otherwise disposed of. This may result in a capital gain or capital loss. Under the new Capital Gains Tax regime gains are taxed at a flat rate of 18%. However, as you might expect, the true picture is far more complicated, for example there could be "Entrepreneurs Relief" which would reduce the tax payable to only 10% of the chargeable gain.

Individuals have an annual tax free allowance for 2010/11 of £10,100. So, if you realise a gain in between 6th April 2010 and 5th April 2011 for more than of £10,100 you could have Capital Gains Tax liability.

The rate of Capital Gains Tax that companies pay is based on the level of their profits. Companies do not benefit from an annual tax free allowance.

If you require any further advice please contact us on 01625 616050 or email us at enquiries@kimeobrien.co.uk