Capital Gain Tax

Capital gains tax (CGT) is payable when you sell an asset that has increased in value since you bought it. The rate varies based on a number of factors. For residential property it may be 18% or 28% of the gain.

Normally, when you sell your main home you don’t have to pay any CGT. However, in some circumstances you may have to pay some for example:

• sub-let part of it (but having one lodger doesn’t count)
• Part of your home is exclusively used for business premises
• You bought it just to make a gain (e.g. if you are a property developer)
• You have another home that could be considered your main residence

 Unless held in a pension or Isa, you'll generally need to consider capital gains tax when selling shares, funds, or other financial products for a profit.