UK Capital Gains Tax (CGT)

Capital gains tax (CGT) is a UK tax that applies when you have made a 'gain' or profit on an asset. Capital gain assets generally refer to things like shares and property. An example of where capital gains tax might apply is if you invest in the stock market and make a profit on the shares when you sell them, you may be liable to pay capital gains tax.

The tax applies to the actual capital gain, rather than the value of the asset.

However capital gains tax does not apply to every capital gain, as there is an annual allowance meaning that any gain up to that amount is exempt from the capital gains tax.

It is important that you keep records related to your assets, such as original price and date of sale, to ensure that your capital gains tax and any other UK tax that affects you are calculated correctly.

There are a number of circumstances where capital gains tax be be applicable,
usually it is when an asset is sold. However it can also be when a gift is given. Another way that capital gains tax can be applicable when a gift is received (or inherited) and you make a gain from selling it on, for example. Also capital gains tax may apply if a house is sold and that home was an investment, for example if it was a rental property or second home.

As with all UK tax, capital gains tax has many regulations and exemptions that should be considered as there are ways of avoiding paying more than you have to. We would recommend that you seek independent financial advice to ensure you are aware of all the UK tax options available to you.

If you require further UK capital gains tax information or perhaps are unsure of what constitues a capital gain, please feel free to visit HM Customs and Excise website.

For exact UK capital gains tax (CGT) rates and thresholds please click here

You may find that some of the links below can provide you with further capital gains tax (CGT) and UK tax information and advice.

	Capital Gains Tax Guide Guide to capital gains tax issues. Find out how much you should pay.
	Find Capital Gains Tax at Ask.com Whatever you're looking for, find it with Ask.com.
	Information About Capital Gain Tax For all other forms of taxation, see tax A capital gains tax is a tax charged on capital gains, the profit realized on the sale of an asset that was purchased at a lower price.
	Find Allowance Capital Gain Tax A leading UK online directory.