Capital Gains Tax is payable when you sell an asset and make profit on the transaction. However, there are times when no CGT is payable, and you should explore all the available options before making a final decision.
It is sometimes more tax efficient to either simply swap an asset like-for-like or gift it to a spouse. They would only then pay CGT if they were to sell it on later. You may have to pay Capital Gains Tax even if an asset is abroad and there are special rules for non-UK residents who own assets in the UK.
Your tax-free allowance can be used to offset some CGT, so it is always worth planning the timing of any asset sale to ensure you pay the minimum. Remember that your tax-free allowance changes year-on-year and you can also claim against losses in the value of an asset to reduce your overall total liability.
At Essendon Tax, we keep up to date on allowances and reliefs and can advise you on the best way to dispose of your asset, ensuring you pay the minimum amount of Capital Gains Tax.