Capital Gains Tax (CGT)
Tax on the profit when you sell (or 'dispose of') an asset that has increased in value, charged at 10% or 20% for most assets.
Key Points
- ✓Key aspect of the UK capital gains tax system
- ✓Understanding this helps optimize your tax position
- ✓Use Calcedia calculators to see the impact on your finances
- ✓Consult HMRC guidance for official information
Detailed Explanation
Capital Gains Tax (CGT) is an important concept in the UK capital gains tax system. Understanding it helps you better manage your finances, optimize your tax position, and make informed decisions about your employment and benefits.
This term relates to how the UK financial system works.
For a more comprehensive understanding of how this affects your specific situation, consider using our free UK salary calculator to see the real impact on your take-home pay.
Practical Examples
- •Use our take-home pay calculator to see how capital gains tax (cgt) affects your salary directly.
- •The exact impact depends on your personal circumstances including your income level, tax code, and other factors.
Frequently Asked Questions
Related Terms
Income Tax
A progressive tax on your earnings, charged at 20%, 40%, or 45% depending on your income level (after personal allowance).
National Insurance (NI)
Mandatory contributions that fund State benefits including the State Pension, charged at different rates for employees, employers, and self-employed.
Personal Allowance
The amount of income you can earn tax-free each year (£12,570 for 2024/25), reduced if you earn over £100,000.