Capital Gains Tax

Capital gains tax (CGT) may be due when you sell, transfer, gift or exchange all, or part of, an asset.

It is paid by UK and non-UK residents, from UK assets such as property and investments. It may also be due when a UK resident disposes of an overseas asset.

WHAT DO YOU PAY CGT ON?

• Shares
• Funds
• Investment trusts
• ETFs
• Land
• Investment and second properties
• Other possessions, like art, worth at least £6,000

WHAT DON’T YOU PAY CGT ON?

• The family home*
• Most personal possessions
• Possessions that depreciate
• UK government bonds (gilts)
• ISA investments
• Pension investments
• Venture capital trusts (VCTS)
• Enterprise investment schemes (EIS)

*In most cases your principal private residence is exempt, however there are some exceptions, for example if you rent part, or your property is on land bigger than one acre.

Selling your second home

Capital gains tax (CGT) is payable on the sale of second homes and buy-to-let property.

If you sell a property in the UK, you might need to pay capital gains tax (CGT) on the profits you make. Generally, this doesn’t include the sale of your main home.

You may also need to pay CGT if you lease out part of your property or if it is partly used as a business premises.

Exemptions and Deductions

Every tax year you have a personal CGT allowance, in addition there are a few circumstances that can reduce the taxable amount of the capital gain. For instances, expenditures and costs, losses and availability of business asset disposal relief.

Sign up here to declare capital gains tax.