1. What you pay it on

You may have to pay Capital Gains Tax if you make a profit (‘gain’) when you sell (or ‘dispose of’) shares or other investments.

Shares and investments you may need to pay tax on include:

  • shares that aren’t in an ISA or PEP
  • units in a unit trust
  • certain bonds (not including Premium Bonds and Qualifying Corporate Bonds)

You’ll need to work out your gain to find out whether you need to pay tax. This will depend on if your total gains are above your Capital Gains Tax allowance for the tax year.

When you don’t pay it

You don’t usually need to pay tax if you give shares as a gift to your husband, wife, civil partner or a charity.

You also don’t pay Capital Gains Tax when you dispose of:

  • shares you’ve put into an ISA or PEP
  • the first £50,000 worth of employee shareholder shares
  • shares in employer Share Incentive Plans (SIPs)
  • UK government gilts (including Premium Bonds)
  • Qualifying Corporate Bonds

How to pay it

Report any Capital Gains Tax you need to pay in your Self Assessment tax return.