Taxation is one of the most complex areas of personal finance, especially for the layman, and Capital Gains Tax is among the more difficult to get to grips with. What is capital gains tax and why do you need to know about it? Let’s have a look at things in more detail.
Capital Gains Tax Explained
Capital gains tax may be implemented when you make a profit at a certain level on an asset. Let’s say you buy a property, and it increases in value by a decent amount. If you then sell that property, you may be liable to pay tax on that profit to the government where you bought the property. However, it is not restricted to property. In the USA and the UK you may also be taxed for profits on stocks, bonds and any non-inventory asset.
What has this to do with non-residents? The rules on capital gains tax for non-residents are worth knowing about if you have property or other assets in the UK, as they may not be straightforward. If you do not live in the UK, for example, you will still need to pay capital gains tax on a property you sell if it is in the UK and was bought from a resident there. If you have shares in UK companies they may also be liable to capital gains tax, although there are rules regarding how long you intend to stay abroad.
You can see from these explanations that, although we are trying to keep it simple, capital gains tax for non-residents can in fact be very complicated, and that’s why we believe you should take all the advice you can.
Professional Advice and Help
It helps to know which assets you own in the UK are liable to tax should you sell; vehicles, for example, are not, and there are also set levels of appreciation that your assets need to meet before you are liable to pay the tax. To take the pain out of the complex situation you should talk to the team at EDA Professional Services, who have many years of experience in dealing with both UK and US tax situations for residents and non-residents alike.
Being able to take advantage of the expertise of people with firm knowledge of taxation makes your life a lot easier, and by engaging EDA Professional Services to help you can also avoid overpaying capital gains tax, and know when and where to sell assets to the best effect.
A friendly, professional and discreet team will deal with your enquiry as smoothly and quickly as possible – you can give them a call or fill in the simple online form and they will get back to you as soon as they can – and they will make sure you have all the boxes ticked and covered, so that you can manage your capital gains tax properly. Get in touch now, and let EDA Professional Services advise you on your capital gains tax requirements.