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  2. Limited Company FAQ's
  3. Capital Gains Tax
  4. When does Capital Gains Tax apply?
  1. Home
  2. Limited Company FAQ's
  3. When does Capital Gains Tax apply?

When does Capital Gains Tax apply?

Capital Gains Tax is a tax charged if you sell, give away, exchange or dispose of an asset and make a profit or ‘gain’.


Some gains though are free (or exempt) from Capital Gains Tax. For instance:

  • Private motor cars, including vintage cars
  • Gifts to UK registered charities
  • Some government securities
  • Personal belongings (or ‘chattels’) where the sale proceeds (or value when given away) are less than £6,000
  • Prizes and betting winnings
  • Cash
  • Assets held in ISAs
  • Foreign currency held for your own use
Updated on 7th May 2021

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