Capital Gains Tax

Capital Gains Tax is a tax that is due when you sell something, referred to as “disposing of” something that has increased in value

It is the profit, known as “the gain” you make that is liable to CGT, not the amount of money you receive

An individual has an Annual Exempt Amount, this is a tax free allowance and you only pay CGT on the gains that are above your Annual Exempt Amount. In the tax year 2021/22 the Annual Exempt Amount for individuals is £12,300

Capital Gains Tax liability is incurred from selling things, referred to as “chargeable assets” such as:

  • personal possessions worth more than £6,000 (apart from your car)
  • property that is not your main home (unless you have let it out or used it for business at any time during your ownership)
  • shares that are not in an ISA or PEP
  • cryptoassets
  • some business assets

If you make a loss on a chargeable asset, you can report this to HMRC in order to deduct the allowable loss from a future gain

The rate of Capital Gains Tax you will pay will depend on the total value of your gain, your other taxable income and whether your gain is from residential property or other chargeable assets

There are special rules that apply to some chargeable assets, if you have sold something for more than you first brought it and think that you may be liable to Capital Gains Tax you can find more information on Gov.uk or by contacting the helpline

Capital Gains Tax is a tax that is due when you sell something, referred to as “disposing of” something that has increased in value

It is the profit, known as “the gain” you make that is liable to CGT, not the amount of money you receive

An individual has an Annual Exempt Amount, this is a tax free allowance and you only pay CGT on the gains that are above your Annual Exempt Amount. In the tax year 2021/22 the Annual Exempt Amount for individuals is £12,300

Capital Gains Tax liability is incurred from selling things, referred to as “chargeable assets” such as:

  • personal possessions worth more than £6,000 (apart from your car)
  • property that is not your main home (unless you have let it out or used it for business at any time during your ownership)
  • shares that are not in an ISA or PEP
  • cryptoassets
  • some business assets

If you make a loss on a chargeable asset, you can report this to HMRC in order to deduct the allowable loss from a future gain

The rate of Capital Gains Tax you will pay will depend on the total value of your gain, your other taxable income and whether your gain is from residential property or other chargeable assets

There are special rules that apply to some chargeable assets, if you have sold something for more than you first brought it and think that you may be liable to Capital Gains Tax you can find more information on Gov.uk or by contacting the helpline

HMRC helpline for general enquiries about Capital Gains Tax.

You will need your Self Assessment Unique Taxpayer Reference.

Telephone:
0300 200 3300

Textphone:
0300 200 3319

Outside UK:
+44 135 535 9022

Opening times:

Phone line opening hours are:

Monday to Friday: 8am to 6pm

Closed on Saturdays, Sundays and bank holidays.