Capital Gains Tax in the UK - A Complete Guide

Goforma03 Dec, 2024Finance

Capital Gains Tax is charged on the profit made when you sell or dispose of assets that have increased in value. The gain is the difference between the price you paid for the asset (its 'base cost') and the price you sell it for. For example, if you bought a house for £200,000 and later sold it for £300,000, your gain would be £100,000, and you would be liable to pay CGT on that amount, minus any applicable allowances or deductions. CGT doesn’t apply to the full amount you receive from selling the asset, only to the profit or "gain" that you make.