Capital Gains Tax

Capital gains tax is the tax levied on the profit from the sale of a property or an investment, which can include art work, jewellery and antiques. Capital gains tax must be paid on items which have increased in value and have been sold at a substantial profit.

If you own a second home, a buy to let home, use part of your home exclusively for business or have developed part of your home and made a profit on it (for example converting into flats), you will probably have to pay capital gains tax. The tax is made on the money that a person has gained from the sale, not on the full amount of the sale.

Capital gains tax only needs to be paid if a certain amount of profit is made from the sale of the possessions in any given tax year. For the 2016/17 budget, you are allowed to make £11, 000 on an investment before you pay any capital gains tax on the profit.

The rate of capital gains tax a person will pay will depend on their overall income, including the capital gains. If the total of this is within the basic rate band, the rate of capital gains tax will be 10%. If both the income and the gains come in at higher than the basic rate, capital gains tax will then be 20%. Before 16th April 2016 the basic rate was taxed at 18%, with the higher rate set at 28%.

Who Does Capital Gains Tax Apply To?

Capital gains tax applies to anybody who has made a significant profit from a property or an item that is counted as an investment.

Personal possessions such as jewellery, antiques, and art work worth no more than £6,000 are liable for capital gains tax when sold. Higher value possessions may be exempt if the usability is less than 50 years.

People do not usually have to pay capital gains tax on profit that they make on their only or main home. Gains on property will be taxable if;

  • Part of the property is used solely for business
  • All or part of the property is let
  • The property was bought and improved with the purpose of making a profit
  • The property has been developed
  • Part of the garden has been sold and the total plot is over 1.2 acres

What If You Can’t Afford Capital Gains Tax?

Although someone may have sold a property or possession and gained a profit on that, the capital gains tax may not be required to be paid immediately. Capital gains tax is set around the national tax year rather than the calendar year.

For example, if you sold your second home in January 2015, you may not be required to pay the capital gains tax until January the following year, by which time you may not find yourself in the financial position to pay the lump sum compared to when you first sold the property.

You must report any capital gains tax you need to pay, either immediately or annually in a self-assessment tax return. If you send a tax return after the deadline, send an inaccurate return or miss your payment, you will have to pay a penalty.

Why Get A Tax Loan For Your Capital Gains Tax?

Taking out a tax loan can relieve the stress of capital gains tax, which can sometimes put a lot of strain on your personal finances. A tax loan will give you a lump sum of cash to pay off the capital gains tax, and allow you to spread the repayment cost over a payment schedule that will suit you and your financial situation. At Taxloan.co.uk, we aim to give you a decision on your application as soon as possible and if approved, we will work to transfer the funds over promptly.

The advantages of taking out a tax loan to pay off your capital gains tax include;

  • Improved cash flow
  • Easy monthly repayments
  • Keeps your bank funding lines open
  • Fixed Rates
  • Fast decisions & Fast funds
  • Personal service & dedicated account manager

At Taxloan.co.uk we recommend a 12-month facility for a capital gains tax loan, although it is possible to arrange terms from 6 to 60 months. Individuals are able to borrow from £10,000 to £10,000,000 from Taxloan.co.uk.

The Benefits Of Using Taxloan.co.uk When Paying Off Your Capital Gains Tax

At Taxloan.co.uk, we provide loans to cover corporation tax, capital gains tax and income tax. We have been working in this industry for over a decade and our dedicated team of financial specialists focus on delivering exceptional customer service, along with competitive rates, fast credit decisions and fast funds.

Our interest rates are extremely competitive and our team of financial experts do their best to make the entire process as smooth as possible for our clients. Being in a difficult financial situation can be a stressful time for somebody, and we aim to eradicate this stress for our clients in a hassle-free manner. Customer satisfaction is of paramount importance to us. Approval for a tax loan can be achieved in just 24 hours, with the funds available in a further 24 hours.

Some of the advantages of using Taxloan.uk to pay off your capital gains tax include;

  • Flexible payments, spread over a period to suit you
  • Competitive interest rates
  • Dedicated Account Manager
  • Easy fixed repayment schedule
  • Approval within 24 hours

Use our online quote calculator on this page to see an illustrative example of your capital gains tax loan. For a more personal service, please get in touch and speak to one of our Account Managers, who will be more than happy to offer any guidance and advice you may need 0330 100 5520.

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Whilst we recommend a 12 month facility for Capital Gains Tax it is possible to arrange terms from 6 to 60 months.

Benefits of tax loans:

  • Improved cash flow
  • Easy monthly repayments
  • Keeps your bank funding lines open
  • Fixed Rates
  • Fast decisions & Fast funds
  • Personal service & dedicated account manager

Loan Example

Loan Illustration Amount:
£30,000
Loan Repayment Term:
12 months
Monthly Repayments:
£2,679.95
Total Amount Repayable:
£32,159.34
Total Fees + Interest:
£2,159.34
Representative APR:
13.9%

Tax Loan Quote Calculator:

GET A QUOTE NOW

Use our loan repayment calculator to tell us what you want to borrow and we’ll show you an example of what you might repay.

If we make you an offer, your rate and payments may be higher depending on our assessment of your circumstances and financial behaviour. Available to over 18’s only, subject to status.







To discuss this quotation, please call our team on 0330 100 5220 .

*Subject to credit approval