Capital Gains Tax (CGT)
Tax on profits when you sell assets outside an ISA, SIPP, or main home.
CGT applies when you sell shares, funds, second properties, or other chargeable assets at a gain. The annual exempt amount has been cut sharply, from £12,300 in 2022/23 to £6,000 in 2023/24 and £3,000 from 2024/25. Rates for 2024/25 are 10% (basic rate) and 20% (higher rate) on most assets, with 18% and 24% on residential property gains. You report and pay via Self Assessment, with UK residential property gains due within 60 days of completion. Investments held inside a stocks and shares ISA, JISA, LISA, or SIPP are completely outside the CGT net.
Inside Finlo
A 60-second lesson that puts this term in context, alongside the others, lives inside the Finlo app.