Capital Gains Tax (CGT) is a tax on capital 'gains'. If when you sell or give away an asset it has increased in value, you may be taxable on the 'gain' (profit). This doesn't apply when you sell personal belongings worth £6,000 or less or, in most cases, your main home.

You may have to pay CGT if, for example, you sell, give away, exchange or otherwise dispose of (cease to own) an asset or part of an asset or receive money from an asset - for example compensation for a damaged asset

You don't have to pay CGT on:

• Your car

• Your main home - provided certain conditions are met
• ISAs 
• UK Government gilts (bonds)
• Personal belongings worth £6,000 or less when
  you sell them
• Betting, lottery or pools winnings money which forms part of your income for income tax purposes  

These are some points to bear in mind:

if you are married or in a civil partnership and living together you can transfer assets to your husband, wife or civil partner without having to pay CGT.

You can't give assets to your children or others or sell them assets cheaply without having to consider CGT.
 
If you make a loss you may be able to make a claim for that loss and deduct it from other gains, but only if the asset normally attracts CGT - for example you cannot set a loss on selling your car against gains from disposing of other assets if someone dies and leaves their belongings to their beneficiaries, there is no CGT to pay at that time - however if an asset is later disposed of by a beneficiary, any CGT they may have to pay will be based on the difference between the market value at the time of death and the value at the time of disposal.
 
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