Capital Gain Tax- What is it?

As a director of a company, you must be well aware about this concept. Moving on, it is time to learn about the Capital Gain tax that is charged for some people.

Capital Gain Tax- What is it?

The Capital Gain tax is the one that you pay on the profit that you make out of selling a product whose price has increased from the time you had purchased the product. For instance, if you purchase a product for £10,000 and sell it for £25,000, you are required to pay the tax for the £15,000 you have gained from the selling. This will be considered only when you are disposing an asset that was in your possession and the one you had purchased by paying the money.

The Capital Gain tax must be paid on possessions that you sell it to the other person and it is not levied on the gifts that you give to your spouses or any of the close family members. In the UK, you are liable to pay the taxes on the property even if you are a non-resident of the region.

You can now get the help of the professional accountants and the financial advisors to help you deal with the Capital Gain tax. They would be in a position to help you calculate the required tax amount that you would have to pay for the gains that you have obtained. The tax rates differ for every person, depending upon the type of property or asset sold. The professional accountants would calculate the tax rates easily and would also help you in paying the returns on time. You need to understand that the tax return that you file for the capital gain is a record that you maintain for a long time. You can now hire the professional accountants for record keeping of the tax returns filed for the capital gain.

This content is originally shared at: http://www.accountingweb.co.uk/community/blogs/vidit-agarwal/taxes-on-business-and-selling