UK capital gains tax

If you are an individual shareholder resident for tax purposes in the UK

When you sell shares, you may have to pay capital gains tax (CGT) on part of any profit you make. CGT is calculated on all gains made during a tax year (which starts on 6 April) and there is no liability to pay CGT if the total of all gains is less than the annual exemption for that year.

The current year (2007/2008) CGT exemption level is £9,200 per person.

If you make a loss on disposing of a particular type of asset during a tax year this can reduce the amount of CGT you have to pay on sales of other assets during that tax year.

Important note

This information is for your guidance only. Please contact your stockbroker or independent financial adviser for proper personal advice on capital gains tax.

Updated : 6 April 2007

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