- Project plans
- Project activities
- Legislation and standards
- Industry context
Last edited 20 Nov 2020
Capital gains tax
Capital Gains Tax (CGT) is levied on the profit that is made when something is sold, gifted, swapped or otherwise disposed of.
The following assets are liable to Capital Gains Tax:
- Property. If it is not the main home (unless it is let out, used for business or larger than 5,000 square metres).
- Shares that are not in a NISA, ISA or PEP.
- Personal possessions that are worth more than £6,000 (apart from a personal car).
- Business assets.
- Overseas assets.
Property that is liable to Capital Gains Tax includes:
The selling of a main home will not generally be liable to Capital Gains Tax and may be eligible for Private Residence Relief.
The investments that are liable to Capital Gains Tax include:
 Personal possessions
The majority of personal possessions that are worth more than £6,000 are liable to Capital Gains Tax, including:
- Coins and stamps.
- Possessions that are part of a set, such as matching vases (the threshold applies to the set as a whole).
- Buildings and land.
- Fixtures and fittings.
- Plant and machinery.
- Registered trademarks.
 When Capital Gains Tax is not required
Capital Gains Tax is only required on any gains which are in excess of the tax-free allowance, which for 2013-2014 is:
- £10,900 for individuals.
- £5,450 for trustees.
It is not normally necessary to pay Capital Gains Tax on gifts between husband and wife, civil partner or to charities. In addition, Capital Gains Tax on inheritance is typically only required when an asset is sold.
The following assets are not liable:
- Personal car.
- Personal possessions that are disposed of for less than £6,000.
- Main home.
- Any tax free investment savings accounts e.g. ISAs and PEPs.
- Winnings from the lottery, betting or the pools.
- UK government gilts and Premium Bonds.
- Personal injury compensation.
- Foreign currency for personal use.
The rates for Capital Gains Tax for 2013-14 are:
- 18% and 28% for individuals (dependent on the total amount of taxable income).
- 28% for trustees or for personal representatives of someone who has died.
- 10% for sole traders or partnerships with gains qualifying for Entrepreneurs' Relief.
 Reporting Capital Gains Tax
 Related articles on Designing Buildings Wiki.
 External references
Featured articles and news
Six technologies guiding O&M into the future.
Homes carved from sandstone cliffs in England.
A review of the HES pilot project.
Organisation alerts membership to findings of IHBC research.
Four outstanding professionals recognised.
Sustainable flooring from super strong grass.
Organisation presents reactions from industry leaders.
New infrastructure bank to be based in the North of England.
Fairer, faster, greener. A summary of the key points.
Strategies to help provide safer working conditions.
Protecting flora, fauna and the other natural features of Scotland.
Architecture considered somewhere between 'sublime and beautiful'.
Polish piano factory revived through an energy-oriented tune up.