The short version: Capital Gains Tax (CGT) is the tax you pay when you sell an asset for a profit. Property, shares, crypto, valuable personal possessions. Basically anything that’s gone up in value since you bought it.
How much will I pay?
The rate depends on what you’re selling and which tax band you’re in. Different assets can have different rates. Check gov.uk for the current figures since they change from time to time.
You get a tax free allowance each year. Gains below that? No tax. Gains above it? That’s when CGT kicks in. Remember, the allowance covers all your gains combined, not each one separately.
Does it get added to my wages?
No. CGT is calculated separately from your regular income. If you’re self employed and also sold some shares at a profit, you’d pay Income Tax on your self employment earnings and CGT on the shares. Different taxes, different rates, different allowances.
What about moving house?
Selling your main home is usually exempt from CGT. It’s only when you sell a second property or buy to let that you’ll likely have CGT to deal with.
Sold something at a profit and need to know what you owe? Drop us a line and we’ll sort it.
