The Capital Gains Tax (Annual Exempt Amount) Order 2018 sets the annual exempt amount for individuals in 2018/19. What does it mean?
When is CGT charged? CGT is charged on any chargeable gains made during the year that are in excess of the annual exempt amount, after losses and reliefs have been applied. However, non-UK domiciled individuals making a formal claim for the remittance basis are not entitled to an annual exemption.
How does this impact CGT reporting for individuals? Capital gains realised in 2018/19 only need to be reported to HMRC if the total proceeds exceed £46,800 (four times the annual exempt amount) or there is tax to pay.
How is the increase determined? The annual exempt amount increases each year if there is a relevant increase in the consumer prices index. The annual exempt amount increased by 3% and was rounded to the nearest £100 for 2018/19 – the figure is £11,700.
To understand more on how this effects you either contact us through the website www.milestone-solutions.co.uk or contact our property tax expert at firstname.lastname@example.org