Capital Gains Tax (CGT) is charged on the profit when you sell or dispose of an asset that has risen in value — shares (outside an ISA), a second home or buy-to-let, business assets, crypto, or valuables. You are taxed on the gain, not the sale price. Each tax year the first £3,000 of gains is tax-free.

The taxable gain is added on top of your income to decide the rate: the slice falling within your remaining basic-rate band is taxed at 18%, and anything above at 24%. Since 30 October 2024 these rates apply to all asset types, including shares which were previously 10%/20%. Your main home is normally exempt under Private Residence Relief, and gains within ISAs and pensions are tax-free. UK residential property disposals must be reported and paid within 60 days.