Understanding UK investment taxation is crucial for managing your investments effectively and minimizing tax liabilities. Here's an overview of the main types of taxes that affect UK investors:
1. Capital Gains Tax (CGT):
What it is: CGT is a tax on the profit you make when selling an asset (e.g., stocks, funds, or property) for more than you paid for it.
Rates: For the 2024/25 tax year, basic rate taxpayers pay 10% on gains, while higher and additional rate taxpayers pay 20%. On property, rates are 18% and 28%, respectively.
Tax-Free Allowance: There is a CGT annual exemption of £6,000 (for 2024/25), meaning you can make gains up to this am...
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