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A tax on the profit when you sell or dispose of an asset that has increased in value.
Capital Gains Tax is charged on the gain (profit) you make when you sell or dispose of an asset, not the total amount you receive. Your main home is usually exempt where Private Residence Relief applies. For 2026/27, the annual exempt amount for individuals is £3,000; most individual gains are generally taxed at 18% or 24% depending on your taxable income and the type of gain. Losses and reliefs can change the calculation.
This definition is for informational purposes only and does not constitute tax, legal, or financial advice. Rules may change and outcomes depend on your circumstances.
These GOV.UK and HMRC sources provide the official context for this glossary entry. The definition is educational and does not determine your individual tax position.