Smith Sutcliffe Solicitors

Capital Gains Tax (CGT)

Capital gains tax (CGT) is a tax on the increase in value of your possessions - such as a second home, antiques or shares - during the time you have owned them. 

Any tax is due when you dispose of them, usually by selling them or giving them away. 


 Capital gains tax (CGT) rates 2017-18

Since April 2016, two different rates of CGT have been charged, which vary depending on the asset you've made a profit on. 

If you have made a capital gain on an investment that isn't a property:

        basic-rate taxpayers pay CGT at 10%

        higher-rate taxpayers and additional-rate taxpayers pay CGT at 20%

If you have made a capital gain on a second home or buy-to-let investment:

       basic-rate taxpayers pay CGT at 18%

       higher-rate and additional-rate taxpayers pay CGT at 28%


Capital gains tax-free allowance 2017

You can make a certain amount in capital gains each year before any tax is due. The table below explains your CGT allowance for the tax years 2016-17 and 2017-18. 


The amount you can get in couple's allowance is also included below. 


Capital gains tax allowances: a summary




Allowance for an Individual



Couple's allowance (note you can only use this if you are married or in a civil partnership)               22,200 22,600



Tax-free gains

You dont have to pay tax on all capital gains. Those listed below some gains which can be determined as tax-free:

        Capital gains tax on cars

        Capital gains tax on gifts to spouses or charity

        Capital gains tax on property sales (The sale of your only or main home)

        Capital gains tax on personal possessions worth no more than 6,000.  


As with all oour overviews, this information is not tailored to your speciifc circumstances. We would therefore strongly advise that you seek advice from one of our Solicitors regarding your circumstances and query.

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