This type of tax is implemented when an asset that has increased in value is sold. It is imposed on the gain made rather than on the full price. Some of the assets are exempt from tax and the CGT does not have to be paid if all the annual gains are under the tax-free allowance.
The term “Disposing of an Asset” refers to:
The CGT is paid on:
If an asset being sold is owned jointly with someone else the CGT will have to be paid on the individual share of the gain. By claiming a relief tax on certain assets may be reduced.
CGT is not paid on:
In some cases CGT will still need to be paid on overseas assets. Special rules will apply in case if you are a UK resident who is not domiciled and claims remittance basis.
If you are based abroad CGT is paid on gains made on residential property based in UK. This terms apply even in the case if you are a non-resident for tax purposes. CGT will not be paid on other UK assets such as shares in UK companies unless you decide to return within 5 years of leaving.
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