Capital Gains Tax Calculator
Enter the details based on one average customer.
The calculator applies to individuals.
It assumes you have not used your annual exemption on any other disposals.
It calculates CGT due ignore any losses brought forward or additional reliefs that may apply to particular disposals such as Entrepreneurs' relief or any form of rollover relief.
CGT is payable at 20% for higher rate tax payers and 10% for basic rate taxpayers.
CGT on residential properties and carried interest is payable at 28% for higher rate tax payers and 18% for basic rate taxpayers.
Understanding Capital Gains Tax in Bedford
Capital gains tax (CGT) applies whenever you dispose of an asset and make a profit. Common disposals include selling property, shares, or valuable personal possessions. For Bedford residents, being aware of local property values and market trends can help you plan and minimise CGT liabilities effectively.
Examples and Scenarios
– Example 1: Selling a Residential Property in Bedford
If you sell a residential property in Bedford for £350,000 that you originally purchased for £250,000, your gain is £100,000. As a higher rate taxpayer, you would pay 28% CGT on the gain, giving a liability of £28,000.
– Example 2: Selling Shares
If you sell shares worth £50,000 that you bought for £30,000, your gain is £20,000. As a basic rate taxpayer, CGT is charged at 10%, meaning you would pay £2,000 in tax.
Common Questions from Bedford Taxpayers
Q: Can I reduce my CGT liability?
A: Yes. You can use your annual exemption, offset losses from other disposals, or consider reliefs such as Entrepreneurs’ Relief if applicable.
Q: How do I report CGT?
A: Gains are reported through your Self Assessment tax return, or via the HMRC online Capital Gains Tax service if you do not normally file a tax return.
Interactive Tools to Plan Your Capital Gains Tax
Use our Capital Gains Tax Calculator to estimate your potential tax liability quickly. Additionally, consider exploring our CGT quiz to test your understanding and learn practical strategies to reduce CGT in Bedford.
Next Steps and Support
If you are unsure about your CGT position, with Cowley Holmes Accountants, our Bedford-based tax advisors can guide you through complex disposals, reliefs, and planning strategies. Click the button below to arrange a consultation.
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