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How to calculate your CGT

Investment sales often mean paying capital gains tax – which means investors must familiarise themselves with the finer details
May 19, 2022

When working out a gain you can subtract acquisition and disposal costs such as trading charges

You can offset CGT you owe against your annual allowance and losses

You have to report gains on UK residential property sold after October 2021 within 60 days

If you have used up your annual individual savings account (Isa) and pensions allowances, but still have money to invest, you may hold funds and shares in a general investment account. But this does not provide shelter from tax, so if the securities held within it have grown in value, you may have to pay capital gains tax (CGT) when you sell them. And if you own property other than your main home and this has grown in value when you sell it, it may also be subject to the tax. So when you sell such assets you need to work out if you owe any CGT, and report it and pay it.

 

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