Capital Gains Tax (CGT) is charged on any profits (the 'gains') you make when you sell (or transfer) shares and unit trusts or other assets such as a second home. If the total of any gains realised in the year, minus any losses, exceeds your annual allowance the excess is liable to CGT.

CGT has a different tax rate depending upon whether it applies to business assets or non-business assets.

Capital Gains Tax rates and bands for 2015/16

Rates
2015 / 16
2016 / 17

Individuals, as top slice of income
on taxable gains up to basic rate limit
on taxable gains above basic rate limit
Trusts generally/personal representatives


18%
28%
28%

10%
20%
20%
Annual Exemption
.
.
- individual
£11,100
£11,100
- trusts (maximum)
£5,550
£5,550
Chattels (proceeds per item or set)
£6,000
£6,000
Entrepreneurs' Relief
.
.
Lifetime Limit
£10,000,000
£10,000,000
Capital Gains Tax rate
10%
10%

Transfers between husband and wife or civil partners living together are generally exempt.
Entrepreneurs' Relief may be taxed at 10%. For trading businesses and companies (minimum 5% employee / director shareholding) held for one year or more
.