Capital Gains Tax (CGT) is a tax on the gain made when you sell or dispose of an asset that has increased in value.
What is the CGT annual exemption amount?
The CGT Annual Exemption Amount is the gain an individual can make from the sale or disposal of an asset in a tax year before they must pay any CGT. For example, the annual exemption amount for the tax year 2022/23 was £12,300.
What is the annual CGT exemption amount currently in effect?
As of April 2023, the annual CGT exemption amount is £6,000, meaning that gains exceeding this threshold are taxable.
How will the reduction in the annual exemption amount affect me?
Due to the reduction in the annual tax exemption, you may pay more taxes on net chargeable gains than in the prior tax year. This may impact individuals and organisations that sell assets and realise gains over the new annual exemption amount.
Our advice
To minimise your tax liability, you must carefully and in advance plan the sale of your capital assets. Please contact Peer Accountants at 0121 369 0695 or email info@peerraccountants.co.uk if you require additional information or professional tax advice. Our specialised accountants can provide expert guidance on tax planning and administration, advise you on the most tax-efficient means of disposing of assets and how to maximise the benefits of the annual exemption amount and ensure that you comply with all applicable tax laws and regulations.