MWL FINANCIAL GROUP
SECTION – PROPERTY EXPERT
SUBJECT – CGT does not apply and why
Hi I'm Jeff Banks, Business Advisor with over 30 years experience at MWL Financial Group specialising in property transactions.
Capital Gains Tax or CGT is not a separate tax. It is simply a method to calculate how much income from a transaction is taxable. The tax is levied at your marginal rate.
CGT is applicable to the sale of investments. Generally the time period for such transactions is in excess of 12 months but certainly transactions taking longer can still be seen as business type transactions and not subject to CGT.
In CGT legislation there is what is termed the 50% general exemption which acts like a tax deduction reducing the amount of the profit on a transaction that is applicable to tax under CGT. Having a transaction treated as a normal or revenue transaction rather than one where applicable means more tax so in that effect CGT is your friend.
For more information contact us at firstname.lastname@example.org and either me, Jeff Banks or one of our experts will be more than happy to help.