Capital Taxes

A Guide to Stamp Duties An introduction to both SDLT on purchases and leases as well as stamp duty reserve tax on share transfers. There are three types of Stamp Duty:

  • Stamp Duty Land Tax (SDLT) - which applies to land transactions
  • Stamp Duty Reserve Tax (SDRT) - which applies to sales of securities on the stock market; and
  • Stamp Duty - which applies to the sale of shares and securities.
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An Introduction to Capital Gains Tax All the basics you need to know about CGT from what it is to the reliefs and exemptions available. Capital Gains Tax (CGT) applies when chargeable assets are disposed of and is applicable to individuals and trustees but not to limited companies, although Limited Companies do pay Corporation Tax on the gains that they make.

Chargeable assets include all forms of property unless it is specifically exempt. The main assets it tends to apply to are land and buildings, shares and business assets including goodwill. CGT can be very complex and the rules are far more detailed that can be explained in this brief summary.

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CGT and Your Principal Private Residence At it's simplest, there isn't CGT on the family home, but letting it out at sometime, second homes and large gardens can all change that.

The sale of an individual's home is normally exempt from CGT, with neither a taxable gain nor loss arising. This is certainly the case where it has been the individual's only or main residence throughout the period it has been owned, or if owned prior to 31 March 1982, then the period since then.

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CGT Entrepreneurs' Relief Explained The relief to allow the first £10 million of lifetime gains on disposal of a material part or all of a business to be taxed at 10%.

Entrepreneurs' relief is available to individuals (or trustees in some circumstances) but not to limited companies. Entrepreneurs' relief can apply when you sell part or all of your business, or shares in your own company after 5th April 2008. Where the relief applies, the capital gain is taxed at an effective rate of just 10% instead of 18% or 28%.

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The Basics of Inheritance Tax Most estates (the assets you leave when you die) are still not charged with inheritance tax, as the total value is not high enough, but more estates are being dragged into the IHT net because of property prices. However, with sensible planning a lot can be done to mitigate the effects of IHT.

Who is liable to Inheritance Tax?

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