Capital Gains Tax (CGT)

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Capital Gains Tax, often abbreviated to CGT, is tax that is payable on the profit made when you sell an asset that has increased in value over the time of ownership.

No tax is payable if the profits, or ‘gains’, made on all of your disposals in the tax year are below an annual tax free allowance. You can check the current annual allowance here.

Similarly, CGT is only payable on certain ‘chargeable assets’. These currently include the following:

  • Most personal possessions worth £6,000 or more, excluding your car.
  • Property (Excluding your main home)
  • Your main home if you’ve let it out, used it for business or if it’s very large
  • Shares that are not in an ISA or PEP
  • Business assets

There are a number of different reliefs that apply to the sale of assets, which can reduce the amount of tax you’ll need to pay.

If you sell a chargeable asset for a loss, you can offset this loss against other gains made, reducing the total tax that may be due. It’s also possible to use losses made in previous years, so speak to us if you’d like to know more!

(As with all of the posts in this Info Centre, these are intended as thought starters and initial guides. They are not intended as a substitute for a detailed conversation with your advisor, so please do double check the current legislation and rates before making decisions!)

Tax Rates 2023/24

We’ve listed below the latest tax rates and allowances as announced in the 2023 Spring Budget, or before.

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