Capital gains tax is charged on the profit when you sell or dispose of an asset that has increased in value. You pay tax on the gain, not the total amount received. It applies to property, shares, business assets, and other investments, but not your main home in most cases.

For the 2024/25 tax year, the annual exemption is £6,000 for individuals and £3,000 for trusts. This means you don't pay capital gains tax on gains up to these amounts each year. Any gains above the exemption are taxable.

For 2024/25, the rates are 10% and 20% for most assets (depending on your income tax band), and 18% and 24% for residential property. Higher rate taxpayers pay the higher rates. The rates depend on your total taxable income for the year.

Usually no, thanks to Principal Private Residence Relief. Your main home is typically exempt from capital gains tax. However, you may pay tax if you've rented it out, used it for business, or it's very large. Some relief may be available even in these cases.

Calculate the gain by subtracting the original purchase price (plus buying costs like solicitor fees and stamp duty) and improvement costs from the sale price (minus selling costs like estate agent fees). This gives you the taxable gain before applying any reliefs or exemptions.

For property sales, you must report gains within 60 days of completion using the online service. For other assets, you report gains in your Self Assessment tax return by 31 January following the end of the tax year in which you made the disposal.