Capital Gains Tax or CGT is that tax that is paid on profits that are made when an asset is sold or disposed of. The gain is what is taxed and not the amount that has been received on the asset. CGT comes into play when assets like personal possessions worth around 6000 or above are sold.
This would not include a car. Property that is apart from your main residence too would be considered and even the main residence if it has been let out, used for business purposes or is very large.
The same tax comes into play when you sell your business as well. Thus, looking to sell a business does not merely involve making a good deal but also understanding the tax implications as well. Otherwise, you may end up paying an arm and leg in taxes that you could have easily minimised or avoided altogether. When in doubt it is best to ask the experts to find out and so having a good tax advisor is crucial.
