Capital Gains Tax Accountant | Pro Tax Accountant

Capital Gains Tax (CGT) in the UK is a levy on the profit you make when you sell or 'dispose' of an asset that has appreciated in value during your ownership period. This could be a second home, shares, or even a piece of artwork. The amount you're taxed depends on the nature of the asset you're selling and your income tax bracket when the profit is added to your taxable income.

The government has set a threshold for capital gains, which was reduced from £12,300 to £6,000 on 6 April 2023, and is set to be cut again to £3,000 in April 2024. Profits exceeding this threshold will be taxed. Not all assets incur capital gains tax. For instance, gifts to your spouse, civil partner, or charity, and your main home are usually exempt. However, you might need to pay capital gains tax when selling a buy-to-let flat, shares not held in an ISA or pension, valuable antiques, art, jewellery, and business assets.