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  • Home
  • About Us
    • Our Company
    • Our Team
    • How We Work
    • Client Charter
  • Services
    • Protection
      • Why Protection is Important
      • Life Assurance
      • Family Income Benefit
      • Income Protection
      • Private Medical Insurance
      • Critical Illness
    • Wealth Management
      • Introduction to Wealth Management
      • Relationship Management
      • Lasting Power of Attorney
      • Trust Information
      • Wills
    • Business Protection
      • Introduction to Business Protection
      • Key Person
      • Share Protection
      • Directors' & Staff Benefits
      • Income Protection
      • Relevant Life Cover
      • Employers' Liability
      • Professional Indemnity
    • Taxation
      • Introduction to Taxation
      • Capital Gains Tax
      • Income Tax
      • Inheritance Tax
    • Savings & Investments
      • Introduction to Savings & Investments
      • National Savings Products
      • Endowments
      • ISAs
      • Equities
      • Collectives
      • Unit Trusts
      • OEICs
      • Investment Trusts
      • Fixed Interest Investments
      • Capital Investment Bonds
      • Offshore Collectives
      • Junior ISAs
    • Pensions
      • Introduction to Pensions
      • Occupational Pensions / Auto Enrolment
      • Personal
      • Stakeholder
      • State Pension
      • SSAS
      • SIPP
      • Executive Pension Plan
      • National Employment Savings Trust (NEST)
      • Annuities
    • Financial Planning
      • Introduction to Financial Planning
    • Mortgages
      • Introduction To Mortgages
      • Mortgage Repayment
      • First Time Buyer
      • Remortgaging
      • Standard Variable Rate
      • Fixed Rate
      • Tracker Mortgages
      • Cashback Mortgages
      • Offset Mortgages
      • Second Charge
      • Buy to Let
      • Self Build
  • Testimonials
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  • Give us a call on0141 332 2999or drop us a message!

    Speak to us today

Capital Gains Tax

Capital Gains Tax Allowances, Liabilities & Reliefs

In the tax year 2022/2023, an individual's CGT allowance is £12,300 (2021/22 - £12,300).

This means you do not have to pay tax on gains from buying and selling shares or other investments during the tax year up to that amount. You do not normally have to pay tax on any gain you make when you sell your main residence.

  2022/2023 2021/2022
For standard rate taxpayers(1) 10% 10%
For trustees and higher/additional rate taxpayers(1) 20% 20%
Annual exempt amount - individuals £12,300 £12,300
Annual exempt amount - trusts £6,150 £6,150
Entrepreneurs' relief lifetime limit £1,000,000 £1,000,000
Entrepreneurs' rate 10% 10%

(1). These rates do not apply to transactions involving residential property (the sale of second homes) or carried interest (the share of profits or gains that is paid to asset managers). CGT rates for these transactions remain at 18% (standard rate taxpayers) and 28% (higher rate taxpayers).

If you have used your CGT allowance, don't forget your Individual Savings Account (ISA) allowance. Both a 'Cash ISA' and a 'Stocks and Shares ISA' can shelter capital gains on investments, for example unit trust holdings, worth up to £20,000 per year.

From 6th April 2008 Taper Relief was removed and a new relief called 'Entrepreneurs' relief' was introduced to reduce the Capital Gains Liabilities on the disposal of certain business assets.

CGT is a tax on capital 'gains'. If when you sell or give away an asset it has increased in value, you may be taxed on the 'gain' (profit). This doesn't apply when you sell personal belongings worth £6,000 or less or, in most cases, your main home.

When do I have to pay CGT?

You may have to pay CGT if, for example, you:

  • sell, give away, exchange or otherwise dispose of (cease to own) an asset or part of an asset
  • receive money from an asset - for example compensation for a damaged asset

You don't have to pay CGT on:

  • your car
  • your main home - provided certain conditions are met
  • ISAs
  • UK Government gilts (bonds)
  • personal belongings individually worth £6,000 or less when you sell them
  • betting, lottery or pools winnings
  • money which forms part of your income for income tax purposes

Important Considerations:

  • if you are married or in a civil partnership and living together you can transfer assets to your husband, wife or civil partner without having to pay CGT
  • you may not give assets to your children or others or sell assets to them cheaply without having to consider CGT
  • if you make a loss you may be able to make a claim for that loss and deduct it from other gains, but only if the asset normally attracts CGT
  • if someone dies and leaves their belongings to their beneficiaries, there is no CGT to pay at that time - however if an asset is later disposed of by a beneficiary, any CGT they may have to pay will be based on the difference between the market value at the time of death and the value at the time of disposal

For further information about the 2022 Budget changes please click here.

Tax treatment varies according to individual circumstances and is subject to change.
The financial conduct authority does not regulate advice on estate planning
The financial conduct authority does not regulate some forms of taxation.

GENERAL ENQUIRY FORM

Marketing Information

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From time to time, we would like to contact you about our products and services which we think you might be interested in. If you consent to us contacting you for this purpose please tick to say how you would like us to contact you.

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Yes please, I'd like to hear about offers and services.
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Please tick this box to confirm you have read and understood our privacy policy.

Capital Gains Tax

Capital Gains Tax Allowances, Liabilities & Reliefs

In the tax year 2022/2023, an individual's CGT allowance is £12,300 (2021/22 - £12,300).

This means you do not have to pay tax on gains from buying and selling shares or other investments during the tax year up to that amount. You do not normally have to pay tax on any gain you make when you sell your main residence.

  2022/2023 2021/2022
For standard rate taxpayers(1) 10% 10%
For trustees and higher/additional rate taxpayers(1) 20% 20%
Annual exempt amount - individuals £12,300 £12,300
Annual exempt amount - trusts £6,150 £6,150
Entrepreneurs' relief lifetime limit £1,000,000 £1,000,000
Entrepreneurs' rate 10% 10%

(1). These rates do not apply to transactions involving residential property (the sale of second homes) or carried interest (the share of profits or gains that is paid to asset managers). CGT rates for these transactions remain at 18% (standard rate taxpayers) and 28% (higher rate taxpayers).

If you have used your CGT allowance, don't forget your Individual Savings Account (ISA) allowance. Both a 'Cash ISA' and a 'Stocks and Shares ISA' can shelter capital gains on investments, for example unit trust holdings, worth up to £20,000 per year.

From 6th April 2008 Taper Relief was removed and a new relief called 'Entrepreneurs' relief' was introduced to reduce the Capital Gains Liabilities on the disposal of certain business assets.

CGT is a tax on capital 'gains'. If when you sell or give away an asset it has increased in value, you may be taxed on the 'gain' (profit). This doesn't apply when you sell personal belongings worth £6,000 or less or, in most cases, your main home.

When do I have to pay CGT?

You may have to pay CGT if, for example, you:

  • sell, give away, exchange or otherwise dispose of (cease to own) an asset or part of an asset
  • receive money from an asset - for example compensation for a damaged asset

You don't have to pay CGT on:

  • your car
  • your main home - provided certain conditions are met
  • ISAs
  • UK Government gilts (bonds)
  • personal belongings individually worth £6,000 or less when you sell them
  • betting, lottery or pools winnings
  • money which forms part of your income for income tax purposes

Important Considerations:

  • if you are married or in a civil partnership and living together you can transfer assets to your husband, wife or civil partner without having to pay CGT
  • you may not give assets to your children or others or sell assets to them cheaply without having to consider CGT
  • if you make a loss you may be able to make a claim for that loss and deduct it from other gains, but only if the asset normally attracts CGT
  • if someone dies and leaves their belongings to their beneficiaries, there is no CGT to pay at that time - however if an asset is later disposed of by a beneficiary, any CGT they may have to pay will be based on the difference between the market value at the time of death and the value at the time of disposal

For further information about the 2022 Budget changes please click here.

Tax treatment varies according to individual circumstances and is subject to change.
The financial conduct authority does not regulate advice on estate planning
The financial conduct authority does not regulate some forms of taxation.

GENERAL ENQUIRY FORM

Marketing Information

Submit your Information

From time to time, we would like to contact you about our products and services which we think you might be interested in. If you consent to us contacting you for this purpose please tick to say how you would like us to contact you.

Email
Telephone
Post
Yes please, I'd like to hear about offers and services.
No thanks, I don't want to hear about offers and services.
Please tick this box to confirm you have read and understood our privacy policy.

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Echo Wealth Management Ltd is authorised and regulated by the Financial Conduct Authority and entered on the Financial Services Register (https://register.fca.org.uk/s) under reference: 943133.

Registered Address: 200 Bath Street, 2nd Floor, Glasgow, G2 4HG.

Registration number: SC486212 Registered in: Scotland

The information contained within this site is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.

If you have a complaint about your adviser, or any financial advice you have received from your adviser, please contact us.

If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service (www.financial-ombudsman.org.uk)

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