Capital Gains Tax (CGT) is a tax on profit made when you sell assets or investments. These can be anything from holiday homes to works of art, shares or the goodwill of a business.  Fehnert Financial Services Ltd believe that by effective tax planning Capital Gains Tax can be minimised and therefore you can receive the maximum return on your capital. 

If you sell or transfer these assets to someone else for more than you paid for them, you may have made a capital gain. If you give assets away to anyone close to you (apart from your spouse) when they are worth more than you paid for them, for tax purposes you may have made a capital gain.

Allowances

As an individual, you can make a capital gain of up to £10,100 in the 2009/10 tax year before you are liable to pay CGT. Any gain above this limit is charged at 18%.

The annual exemption for trusts is £5,050 for 2009/10 (£4,400 for 2006/07).

Calculations of CGT liabilities can become confusing.

For more information on the advice we offer on Capital Gains Tax, please contact our tax planning team here.