Capital Gains Tax

Tax paid on the profit made when selling a business asset, including your business itself, shares, or investment property.

Understanding CGT is essential before selling your business or investments. Business Asset Disposal Relief can reduce CGT to 10% on the first £1M of qualifying gains, saving founders significant sums.

You sell your e-commerce business for £500,000. Your original investment was £50,000. Capital gain = £450,000. With Business Asset Disposal Relief, CGT = 10% = £45,000 instead of the standard 20%.