Capital Gains Tax (CGT)

Definition

A tax on the profit when you sell an asset that has increased in value. Your main home is exempt (Private Residence Relief), but CGT applies to second homes, buy-to-let properties, and inherited properties that are not your main residence. The annual exempt amount is £3,000 (2024/25). Rates are 18% (basic rate) or 24% (higher rate) for residential property.