CGT

In the UK, Capital Gains Tax is the levy you pay on any profits made when selling something that has risen in value. It is important to remember that it is the gain which is taxed – not the full sale price. For example, if an investment is bought for £100 and sold later for £150, £50 would be subject to CGT. The annual tax-free allowance, which is known as the Annual Exempt Amount, allows you to make a certain amount of gain each year before you must pay tax.