What counts
Capital Gains Tax applies to the profit you make disposing of a chargeable asset — most commonly shares outside an ISA or pension, an investment fund, a business, or personal possessions worth over a set amount. Everyday items and your ISA or pension holdings are generally outside its scope.
Your tax-free allowance
GOV.UK confirms the current annual exempt amount is £3,000 for an individual (£1,500 for most trusts). You only owe Capital Gains Tax on your total gains for the year above that figure, after deducting any allowable losses.
Current rates
GOV.UK's current guidance gives 18% on gains within your basic rate Income Tax band, and 24% on gains above it or if you are a higher-rate taxpayer. The rate depends on your total taxable income for the year, so the same gain can sit in a different band depending on your other earnings.
How to report it
Gains on shares and other assets are normally reported through Self Assessment, on the Capital Gains pages of your return, rather than through the separate 60-day service used for UK property. If you do not otherwise need to file a return, HMRC provides a way to report and pay gains outside the annual return — check with HMRC or with us which applies to your situation.
Losses can help
A loss on one disposal can be set against a gain on another in the same tax year, and unused losses can usually be carried forward. Keep records of every disposal, gain and loss, since HMRC can ask to see them.
Need a hand with your return?
We prepare and file Self Assessment returns for directors, sole traders and landlords, and tell you exactly what is due and when before anything is submitted. Call 0114 327 1480.