The UK Rules
Capital Gains Tax

Capital Gains Tax Explained

This section explains the amount of gains and allowances (or tax rates) you can make each year. Check how you become liable for Capital Gains Tax - even though some capital gain is tax-free.

WHAT IS CAPITAL GAINS TAX? In simple terms Capital Gains Tax (CGT) is a tax charge.

It gets charged against the increase in value from selling or 'giving away' property, shares, or personal possessions.

A capital gains charge (or a tax levy) could also be due on other types of accumulated profit. Thus, disposing of an investment or business asset you once owned could be liable for CGT.

As a result of the 2016 Budget, the current charges for Capital Gains Tax in 2019 are now levied at two different rates.

The current charge rate for CGT is 10% for basic rate taxpayers (reduced from 18%). The rate jumps up to 20% for taxpayers who fall into the higher rate tax band (reduced from 28%).

The History of Capital Gains Tax in the United Kingdom

There was one primary driver to the introduction of Capital Gains Tax in the United Kingdom. It was the rapid growth in property values post World War II.

This led to some property developers 'deliberately' leaving office blocks empty. A rental income could not be established and greater capital gains could be realized. Thus, the UK Capital Gains Tax system got introduced by the Chancellor at the time - James Callaghan in 1965.

Capital Gains Tax Guide

Business Asset Rollover ReliefBusiness Asset Rollover Relief

ROLLOVER RELIEF: Capital gains may be liable on the proceeds made by the sale or disposal of old assets. But, investing the profit into new business assets can defer the chargeable gain.

Capital Gains TaxCapital Gains Tax

CGT EXPLAINED: This section overviews Capital Gains Tax rules on profit realized by the disposal of assets. Find out how to work out the current rates of CGT and how to pay tax owed.

Follow UK Rules for 2019 Updates!

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Capital Gains Tax for BusinessCapital Gains Tax for Business

MAKING A PROFIT: Capital Gains Tax may be liable any time you produce a profit. Find out the full liabilities on Capital Gains Tax for business owners and how to work out the gain.

Capital Gains Tax on Personal PossessionsCapital Gains Tax on Chattels

PERSONAL POSSESSIONS: A gain is the difference between the purchase price and the selling price. Find out how to calculate Capital Gains Tax on personal possessions.

Entrepreuneurs' ReliefEntrepreneurs' Relief

QUALIFYING CONDITIONS: Information on claiming HMRC Entrepreneurs' Relief and how it works. Check how to pay less Capital Gains Tax after you sell or 'dispose of' a business (or part of it).

Wills, Probate, and Inheritance in the United KingdomWills and Probate

PROBATE UK: Dealing with the will, probate and inheritance of a deceased person can be complex. The section will help you sort through the affairs of wills and probate.

Capital Gains Tax Guide and Overview for the United Kingdom