"You pay CGT on profits made from selling or disposing of an asset. The gain is taxed, not the full sale price, and you can deduct some expenses too. Capital Gains Tax is levied on profits from the sale of second homes and buy-to-let properties, as well as investments and assets like art, antiques and jewellery if they are worth more than 6,000 each. Crypto assets are also subject to CGT."
"The leap in CGT receipts is down to several factors. It started with the slashing of the Capital Gains Allowance that's the amount you can make from selling assets before tax is due. It was 12,300 in 2023 before being cut to 6,000 and is now just 3,000. (Getty Images/iStockphoto) Additionally, the main CGT rate has also risen. Back in 2023 basic-rate taxpayers paid it at 10 per cent and the higher rate was 20 per cent. This rose to 18 per cent and 24 per cent in October 2024."
Background tax rises are set to increase Capital Gains Tax receipts substantially, with HMRC projected to take £13.7bn rising to £30bn by 2030/31. The annual tax-free Capital Gains Allowance fell from £12,300 in 2023 to £6,000 and is now £3,000, bringing more people into the CGT net. Main CGT rates increased from 10%/20% to 18%/24% in October 2024. CGT applies to profits on sales of second homes, buy-to-let properties, investments, valuable items and crypto assets. More taxpayers will face larger CGT bills and some will encounter the tax for the first time.
Read at www.independent.co.uk
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