1. Property Assets
Types of Property Assets: Includes real estate such as office buildings, rental properties, land, and other physical property.
Capital Gains Tax (CGT):
CGT Rate: Typically higher rates apply to gains from the sale of property (e.g., 18% for basic-rate taxpayers, 28% for higher-rate taxpayers on residential property).
Private Residence Relief (PRR): Exemptions may apply if the property is your primary residence.
Reporting: Property sales must be reported and CGT paid within 60 days after the sale.
Depreciation: Property assets often appreciate in value over time, though they may also be subject to market fluctuations.
Financing: Businesses can usually take out loans to purchase property and use it as collateral.
2. Other Assets (e.g., Shares, Bonds, and Business Assets)
Types of Other Assets: Includes shares, stocks, bonds, and business assets like machinery or equipment.
Capital Gains Tax (CGT):
CGT Rate: Generally, the CGT rates are lower for non-property assets (e.g., 10% for basic-rate taxpayers, 20% for higher-rate taxpayers).
Exemptions: Gains on certain investments may be exempt from CGT, such as those held in an ISA (Individual Savings Account) or pension funds.
Reporting: These assets are reported on your annual self-assessment tax return.
Depreciation: Non-property assets, particularly business assets, may be subject to depreciation over time, reducing taxable profits.
Financing: Non-property assets, such as machinery or inventory, may be financed differently, typically through leasing or hire purchase agreements.
