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Capital Gains Tax: A Guide for UK Individuals
What is Capital Gains Tax?
Capital Gains Tax (CGT) is a tax levied on capital gains, which is the profit realized on the sale of a non-inventory asset by an individual or trust in the United Kingdom.When is Capital Gains Tax Payable?
CGT is payable on the following transactions: * Sale of a second home * Sale of a buy-to-let property * Sale of shares (at a rate of 10% or 20%)Capital Gains Tax-Free Allowance
Before paying CGT, individuals can deduct the Capital Gains tax-free allowance from their taxable gain. For the 2024 to 2025 tax year, the allowance is £3,000.Paying Capital Gains Tax
Individuals are responsible for reporting and paying their Capital Gains Tax. The tax must be paid by self-assessment, with the deadline being 31st January following the end of the tax year in which the gain was made.How to Calculate Capital Gains Tax
To calculate your Capital Gains Tax liability, follow these steps: 1. Determine the amount of your capital gain by subtracting the cost of acquiring the asset from the proceeds of the sale. 2. Deduct the Capital Gains tax-free allowance from your taxable gain. 3. Apply the appropriate tax rate to your remaining taxable gain.Tax Rates and Allowances
The tax rates and allowances for Capital Gains Tax vary depending on the type of asset sold and the individual's circumstances. For the most up-to-date information, consult the HMRC website or consult with a tax professional. 
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