What is Capital Gains Tax?

By

Chris Andreou

Contents

What is Capital Gains Tax?What is Capital Gains Tax?

Capital gains tax (CGT) is a type of tax applied to profits made when you sell or dispose of an asset. As its name suggests, it's the gain you make that is taxed-and not the amount you receive for the asset.

You're required to pay CGT when you sell assets such as personal possessions worth £6,000 or more, property that isn't your main residence, your main residence if you've let it out, used it for business or it's very large, as well as business assets.

Capital gains tax (CGT) is a type of tax applied to profits made when you sell or dispose of an asset. As its name suggests, it's the gain you make that is taxed—and not the amount you receive for the asset.

You’re required to pay CGT when you sell assets such as personal possessions worth £6,000 or more, property that isn’t your main residence, your main residence if you've let it out, used it for business or it's very large, as well as business assets.

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