You pay Capital Gains Tax on the gain when you sell (or ‘dispose of’):
- most personal possessions worth £6,000 or more, apart from your car
- property that isn’t your main home
- your main home if you’ve let it out, used it for business or it’s very large
- shares that aren’t in a NISA, ISA or PEP
- business assets
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
You may have to pay Capital Gains Tax even if your asset is overseas.