2. What you pay it on

You pay Capital Gains Tax on the gain when you sell (or ‘dispose of’):

These are known as ‘chargeable assets’.

Depending on the asset, you may be able to reduce any tax you pay by claiming a relief.

When you don’t pay it

You only have to pay Capital Gains Tax on your total gains above an annual tax-free allowance.

You don’t usually pay tax on gifts to your husband, wife, civil partner or a charity.

What you don’t pay it on

You don’t pay Capital Gains Tax on certain assets, including any gains you make from:

  • NISAs, ISAs or PEPs
  • UK government gilts and Premium Bonds
  • betting, lottery or pools winnings

When someone dies

When you inherit an asset, Inheritance Tax is usually paid by the estate of the person who’s died. You only have to work out if you need to pay Capital Gains Tax if you later dispose of the asset.

Overseas assets

You may have to pay Capital Gains Tax even if your asset is overseas.

There are special rules if you’re a UK resident but not ‘domiciled’ and claim the ‘remittance basis’.

If you’re abroad

You have to pay tax on gains you make on residential property in the UK even if you’re non-resident for tax purposes. You don’t pay Capital Gains Tax on other UK assets, eg shares in UK companies, unless you return to the UK within 5 years of leaving.