By Hunter Gee Holroyd

04/12/2018 We may not like to pay taxes, but they are a necessity. Without them, the government would be unable to pay for infrastructure, emergency services, schools and everything else that we often take for granted. The most common form of tax that anybody is likely to encounter directly is income tax. Basically, this is tax that is taken directly from your earnings whenever you are paid.
Income tax is not the only form of taxation though, and there is quite a range of different ways that we may be expected to pay. Another common form is capital tax, with many accountancy York based firms helping clients with this particular tax duty.
Here is a brief explanation of what capital tax is, and who might be expected to pay it.


Profits on Selling

Capital gains tax is the tax that you are expected to pay on the profit you make when selling a property. So, to reiterate, if you buy a property and then sell it a few years down the line for more than you bought it for, you will be taxed on the difference.
Note that it is not the amount you receive when selling that you are taxed on. It is the difference between what you bought it for, and what you sold it for. If you are unsure of how to calculate the profit and what you need to pay, any accountancy York company should be able to help you.


Who Has to Pay? If you are an individual or a business, then you are likely to be liable for capital gains tax if you have recently made a profit on selling a property. There are some exceptions, though, and it can become quite technical. So it is often a good idea to speak with an accounting professional to determine just what you are liable for. Paying it on time is even beneficial for Wealth Management.
It could be that you have to pay less than you had thought, or even that you don’t have to pay at all, so it is well worth your while contacting an accounting professional just to be sure.


Chartered Accountants York
The laws can be confusing at times, and they can also change, so it is advisable that you contact your local chartered accountants York based company. They can let you know exactly what you need to pay. They could also give you other advice that might help you make savings in other areas.


Check out more at: https://www.hghyork.co.uk/