Capital Gains Tax (CGT) in the UK is a tax levied on the profit or gain made when an individual or business sells or disposes of certain assets and makes a financial gain. It applies to various types of assets, such as property, investments, businesses, and personal possessions.

Our qualified accountants provide a complete Capital Gains Tax service and will handle the entire tax return process including dealing with HMRC on your behalf. Need help? Call us 0203 002 2027.

Disposing of an asset

Disposing of an asset includes:

• selling it
• giving it away as a gift, or transferring it to someone else
• swapping it for something else
• getting compensation for it – like an insurance payout if it’s been lost or destroyed

What you pay it on

You pay Capital Gains Tax on the gain when you sell (or ‘dispose of’):

• most personal possessions worth £6,000 or more, apart from your car
• property that’s not your main home
• your main home if you’ve let it out, used it for business or it’s very large
• any shares that are not in an ISA or PEP
• business assets

These are known as ‘chargeable assets’.

If you sell or give away cryptoassets (like cryptocurrency or bitcoin) you should check if you have to pay Capital Gains Tax.

Depending on the asset, you may be able to reduce any tax you pay by claiming a relief.

If you dispose of an asset you jointly own with someone else, you have to pay Capital Gains Tax on your share of the gain.

When you do not pay it

You only have to pay Capital Gains Tax on your total gains above an annual tax-free allowance.

You do not usually pay tax on gifts to your husband, wife, civil partner or a charity.

What you do not pay it on

You do not pay Capital Gains Tax on certain assets, including any gains you make from:

• ISAs or PEPs
• UK government gilts and Premium Bonds
• betting, lottery or pools winnings