πŸ’° Understanding Capital Gains Tax (CGT) πŸ’° 
 
Capital Gains Tax (CGT) is a tax on the profit you make when selling or disposing of an asset. This can include selling, gifting, swapping, or compensation for a loss. πŸš€ 
 
Who Pays CGT? πŸ€” 
 
β€’ Sole traders & partnerships – You’re taxed because there’s no legal separation between you and your business. 
 
β€’ Limited companies – Pay Corporation Tax instead of CGT. 
 
CGT can be tricky, so here’s a quick breakdown! πŸ‘‡ 
 
CGT for Individuals πŸ‘πŸš—πŸ’Έ 
 
🏠 Selling Your Home? No CGT if: βœ”οΈ It’s your only home & main residence βœ”οΈ You didn’t buy it to flip for profit βœ”οΈ The land is under 5,000 sqm 
 
🚘 Selling Your Car? No CGT unless it was used for business. 
 
πŸ’Ž Exempt Assets: βœ”οΈ Gifts to spouse/charity βœ”οΈ ISAs, government bonds, lottery winnings πŸŽ‰ 
 
CGT for Businesses 🏒 
 
πŸ”Ή Limited companies pay Corporation Tax on asset sales. πŸ”Ή Sole traders & partners pay CGT on business assets. 
 
How is CGT Calculated? πŸ“Š 
 
CGT is paid on the profit, not the sale price. Subtract costs like advertising fees or improvements before calculating tax. πŸ“‰ 
 
CGT Allowances 🎯 
 
You don’t pay CGT if your total gains are below: πŸ“… 2023/24 – Β£6,000 (Individuals) / Β£3,000 (Trustees) πŸ“… 2024/25 – Β£3,000 (Individuals) / Β£1,500 (Trustees) 
 
Taxable Gains Examples πŸ’‘ 
 
βœ… If you make Β£8,000 in gains (2024/25), only Β£5,000 is taxable! 
βœ… If a trustee makes Β£4,000 in gains (2024/25), only Β£2,500 is taxable! 
βœ… If you make Β£12,000 in gains (2023/24), only Β£6,000 is taxable! 
 
CGT can be tricky, but now you know the basics! πŸ“–πŸ’‘ Save this for later! πŸ”₯ #CGT #TaxTips #MoneyMatters #JSB 
 
As a family-run company, we pride ourselves on providing a bespoke service tailored to your particular needs. 
 
Above all, our objective is to save you time, money and effort in managing your accounts, leaving you free to focus on building your business. 
 
Remember, you’re not alone, we’re always here to help if you have an accounts problem or query. 
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