Most assets are liable to Capital Gains Tax when you sell or dispose of them. These include shares, property, business assets and personal possessions - whether they're in the UK or overseas. But some assets are exempt – such as your car and, in most cases, your main home.
On this page:
Some assets aren't liable to Capital Gains Tax at all because they’re exempt. These include:
Most assets - other than those covered above - are liable to Capital Gains Tax when you sell or dispose of them.
This section lists some of these assets. It also outlines situations when you may not need to pay Capital Gains Tax, even though the asset is usually liable.
Usually if you pay Income Tax on the gain or profit you make from disposing of an asset you won't have to pay Capital Gains Tax on the gain too. For example, if you're trading as a property dealer, jewellery maker or antiques dealer.
If you're unsure whether you should be paying Income Tax or Capital Gains Tax, please contact HM Revenue and Customs (HMRC).
Most property is liable to Capital Gains Tax. You must work out the gain or loss if you sell or dispose of it.
Types of property liable to Capital Gains Tax include:
However, if you sell your main home - even though the asset is liable to Capital Gains Tax - you may qualify for Private Residence Relief. This may mean there's no tax to pay.
See more about Private Residence Relief on your main home
Find out more about Capital Gains Tax and property
Disposals of shares, units in a unit trust and similar investments are liable to Capital Gains Tax. You must work out the gain or loss if you sell or dispose of them.
Investments liable to Capital Gains Tax when you sell or dispose of them include:
There may be no tax to pay if your shares have been replaced by new shares following a company reorganisation or take-over.
And if you still own shares but they’ve become worthless, or worth next to nothing, you may be able to claim a loss.
More about Capital Gains Tax and shares
What to do if you’ve made a loss
Most personal possessions worth more than £6,000 are liable to Capital Gains Tax. This applies to individual possessions and collections or sets worth £6,000 as a whole. You must work out the gain if you sell or dispose of them.
Personal possessions liable to Capital Gains Tax (if they’re worth more than £6,000) include:
However, there may be no tax to pay if both of the following apply to the possession:
An example of this might be a caravan or motor-boat you bought and used for pleasure.
Read more about personal possessions and Capital Gains Tax
Many business assets are liable to Capital Gains Tax. These may be buildings, equipment, fixtures and fittings, or even the business's reputation ('goodwill'). You must work out the gain or loss if you sell or dispose of such business assets.
Some typical business assets liable to Capital Gains Tax include:
However, you may qualify for tax reliefs that reduce the amount of Capital Gains Tax you pay. For example, you may be able to claim Business Asset Roll-Over relief. You can do this if you sell a business asset and re-invest the 'proceeds' (usually the amount you receive) in a new business asset. Or you may be able to claim Entrepreneurs' Relief if you've sold your business or it's ceased trading.
Find out more about business reliefs for Capital Gains Tax
Read more about business assets and Capital Gains Tax
Overseas assets are liable to Capital Gains Tax if you're 'resident' - or 'ordinarily resident' - in the UK. For example, if you choose to live or work in the UK and do so on a regular basis, you're probably resident here. You are liable on gains arising both in and outside the UK.
Typical overseas assets include:
However, if you're 'resident' in the UK but not 'domiciled' here, you may be able to claim what’s known as the 'remittance basis'. This might perhaps be because you or your father were born abroad, or you plan to live permanently abroad. You're liable on all gains arising in the UK. You'll only be liable on foreign gains when you bring them into (‘remit’ them to) the UK.
Residency, domicile and tax on foreign gains are complicated subjects - a lot depends on the facts of each case. See more in the guidance below or contact HMRC.
Download guidance on residency, domicile and the remittance basis (PDF 560K)
Find out how gifts, inheritance, separation and divorce can affect your Capital Gains Tax
What to do if you’ve made a loss
Your assets - calculating gains, using reliefs
Capital Gains Tax rates and annual tax-free allowances
Capital Gains Tax glossary - some plain English explanations
