Paying Capital Gains Tax
You need to advise the Inland Revenue when you make a capital gain or if you wish to claim a loss. To do this you need to complete a self assessment tax return for the year in question.
If you do not normally complete this return each year, you will need contact your tax office and request the return.
You do not need to report any gain if it is exempt from CGT. If the gain is not exempt and below the CGT annual allowance you should still complete the self assessment tax return.
It is important to keep records of the purchases and sale of assets over the years. This will help you to work out potential gains and losses. You should also keep a list of any expenditure in relation to the assets you hold.
Some expenditure can be offset against CGT to reduce the amount of tax payable.
We would recommend that you seek professional advice when you are considering selling or gifting assets.
