Home   News   Article

Subscribe Now

Explaining capital gains tax




Broadly speaking, Capital Gains Tax (CGT) is tax charged on the difference between the value you dispose of an asset for and the value you paid for an asset, less your annual exemption (tax free allowance), which for 2020/21 is £12,300.

The rate of CGT you pay is determined by the combined total of your taxable income (your income less your personal allowance less any income tax reliefs) and your taxable gain (chargeable gain less annual exemption) for the given tax year.

If the combined amount is within the basic Income Tax band (£0 - £37,500 for 2020/21), you’ll pay 10% on your gains and you’ll pay 20% on any amount above this.



This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies - Learn More