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 |
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