Capital gains is the least common tax on income, and for many it won’t apply. However, if you sell or give away an asset worth more than £6,000, you could have to pay CGT. It doesn’t apply for main homes, cars or lottery/pools winnings, among other things. Each year, individuals have an annual exemption amount that allows them to receive some gains tax-free. Above this, you pay capital gains tax on all gains.
Capital gains tax in 2016/17
|Annual exemption amount||£11,100 for individuals|
|Standard capital gains tax rate||18% on residential property, 10% on other assets|
|Higher capital gains tax rate||28% on residential property, 20% on other assets|