Capital Gains Tax (CGT) is payable when you sell something and make a profit on it as well as when you give something away that would otherwise be included in CGT.
Some things are not liable for CGT however and you should check the rules with HMRC for your individual circumstances.
The amount of CGT that is due depends on the profit you make (i.e. the amount you sell it for less the amount you paid for it) and is only payable if it exceeds the CGT allowance for the tax year in which you make the gain.
The CGT Allowance for 2018/19 is £11,700.
This amount has been increased from 2017/18 when the rate was £11,300.
Examples of when Capital Gains Tax is due could be:
- On the sale of a second property
- On the disposal of personal assets that are worth more than £6,000 (although this does not include your car)
- On the sale of shares (that are not held in an ISA)
Obviously if your profits from selling these types of goods/assets is below the allowance then no tax is payable.