Capital gains

Published: 22 Feb 2014


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Capital gains tax (CGT) is due on any increase in value of an asset from the time of acquisition to the time of disposal. A person resident in the UK is charged to CGT on worldwide assets.

Capital gains are taxable after deduction of the individual's annual allowance, and any capital losses brought forward. Tax is applied to the gain at a rate of 18% to the extent that it falls within the taxpayer's basic rate band, and 28% thereafter.

Consequently, there could be a tax advantage to disposing of a property in a year in which a person's UK income is lower.

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