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.