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    Capital Gains Tax basics

    CGT is tax on the profit when you sell certain assets for more than you paid.

    By the Happy Wallets team·Updated June 2026·4 min read

    What it applies to

    • Second properties and investment property.
    • Shares held outside an ISA or pension.
    • Some business assets.
    • Personal possessions above a value threshold.

    Reliefs and allowances

    There is an annual tax-free allowance, and reliefs exist for some business sales and your main home. The rates depend on the asset and your income.

    Frequently asked questions

    Is my main home taxed?+
    Your main residence usually qualifies for relief, so most home sales are exempt. Check the current allowance and rules on GOV.UK.
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