United Kingdom » Taxes

Capital Gains Tax	Income Tax	VAT

Capital Gains Tax

Capital Gains Tax (CGT) was introduced in 1965. Individuals, trustees and personal representatives are potentially liable. Most of the CGT rules apply to companies. However, companies do not pay CGT, but instead pay corporation tax on chargeable gains on the disposal of assets. It is charged on total chargeable gains in the tax year, after certain deductions (if available), e.g. allowable losses, taper relief and the annual exemption. The main CGT rules are contained in the Taxation of Chargeable Gains Act 1992. UK residents and ordinary resident individuals are liable on all gains, wherever they arise. However, if they are also non-UK domiciled, they are generally only liable to CGT on gains brought into the UK.

Income Tax

A property owned by a company and generating an income is subject to a tax of 30%. A resident is subject to a 0-40% income tax based on the amount of income earned in UK.

VAT

Residential rentals and sales are subject to 17.5% GST.