Understanding Capital Gains Tax: A Complete Guide for London Residents & Businesses
Selling an asset at a profit is a rewarding milestone — but it often comes with a tax obligation that many people overlook until it is too late. Knowing your liabilities in advance can save you thousands of pounds. What is capital gains tax? Capital Gains Tax (CGT) is a tax levied on the profit made when you sell or dispose of an asset that has increased in value. It is not the total sale price that is taxed — only the gain, meaning the difference between what you paid for the asset and what you received when you sold it. Assets subject to CGT include property, shares, business assets, and certain personal possessions worth over £6,000. Who pays capital gains tax in London? Anyone who disposes of a chargeable asset at a profit may be liable for Capital Gain Tax in London . This includes individuals, sole traders, partners in a business, and trustees. With London's thriving property market and active investment community, a large number of residents find themselves navigating ...