Essential Guide to Capital Gains Tax: Allowances, Rates, and Exceptions

Capital Gains Tax is catching more investors than ever before. With the annual tax-free allowance slashed from £12,000 to just £3,000 in recent years, understanding when and how much CGT you'll pay has become essential for anyone investing outside an ISA.

Capital Gains Tax (CGT) is charged on the profit you make when selling assets like shares, bonds, property, or cryptocurrency. Once your gains exceed £3,000 in a tax year, you'll pay 18% as a basic rate taxpayer or 24% as a higher rate taxpayer on the excess.

The good news? Investments held in ISAs are completely exempt from CGT. But if you're investing through a General Investment Account (GIA) or hold other taxable assets, you need to know the rules.

Our guide covers

Which assets are subject to CGT (and which aren't)

Special rules for selling your business, overseas assets, or inherited property

How to calculate what you owe with worked examples

Tax relief opportunities that could save you thousands