Capital Gains Tax

Capital Gains Tax is a tax on the profit or gain you make when you sell, give away, transfer or exchange ('dispose of') something of value - ‘an asset’. You don’t pay Capital Gains Tax on some assets, for example personal possessions worth £6,000 or less, or in most cases, your main home.

Who pays Capital Gains Tax?

Capital Gains Tax is paid by:

individuals who are UK resident or UK ordinarily resident
executors or administrators - 'personal representatives' - responsible for a deceased person's financial affairs
trustees of a settlement

If you are in a business partnership you must pay Capital Gains Tax on your share of any gain when you sell or otherwise dispose of partnership assets. For limited companies capital gains form part of the total profits of the company on which they pay Corporation Tax.

Special Capital Gains Tax rules may apply if you don't normally live and work in the UK.