Welcome to Hoxton Wealth, the new home of Hoxton Capital

Capital Gains Tax

Tax PlanningCapital Gains Tax

Capital Gains Tax (CGT) is a tax on gains, or profit, made on the disposal of assets, whether the disposal occurs due to the sale of the asset or gifting. The most common capital gains are realised from the sale of stocks, bonds, precious metals, and property. It is distinct from tax on regular income.

  • Disposing Of An Asset Includes

    • Selling it
    • Giving it away as a gift, or transferring it to someone else
    • Swapping it for something else
    • Getting compensation for it – like an insurance payout if it’s been lost or destroyed
Learning Resources

How Can We Help You?

If you would like to speak to one of our advisers, please get in touch today.

“The company was recommended to me, i first called the company and received a call back later the same day, from start to completing the pension transfer i had numerous video link calls with them and they really made the whole process easy and very understandable, nothing was an issue and the whole team where very knowledgeable and experienced, nothing was a problem for them, truly recommend there services, great work from all there team.”

P Wood

22, April

“Since December 2024 I have been working with Hoxton’s, primarily with Ellie Gracie on 3 investment vehicles. I opted out of the first as I considered it too risky, the second one has been set up in March and we are currently trying to close on another in the next few days. Ellie has been great. She is always ready to listen to my concerns and is prompt with her email responses. I would say that we work well as a team and I certainly listen to her advice. Long may it continue!!”

R Permanand

21, April

“good product knowledge, easy to contact.”

M Shaw

21, April

“Our advisor, Avi Shah is patient, knowledgeable and personable. He took time to get to know us and didn’t rush us into an agreement . He is proactive and available to chat when needed and has provided us excellent advice in our assets.”

C Field

25, March


Where Is Capital Gains Tax?

Capital gains tax is common throughout the world and is particularly high in 

  • USA
  • Canada
  • Australia
  • the UK
  • Ireland
  • Germany
  • France
  • Portugal
  • Spain
  • Italy
  • with Denmark having the highest top marginal rate at 42%

Some countries distinguish between short-term and long-term holdings and property. Most have different rates of taxation for individuals and corporations.

Some countries do not impose any capital gains tax, including the UAE.

Returning To The UK

The UK tax system, like others, operates on a worldwide basis. This means that if you are a returning British expatriate, your income and capital gains will generally be taxable in the UK, regardless of the country in which they arise.

In the UK, you pay capital gains tax on the gain when you dispose of chargeable assets such as:

  • Most personal possessions worth £6,000 or more, apart from your car
  • Property that’s not your main home
  • Your main home if you’ve let it out, used it for business or it’s very large
  • Shares that are not in an ISA or PEP
  • Business assets

If you make a profit on the sale of certain types of property, the gain after deductions will be taxable at the main rate of either 10% or 20%, depending on your income tax bracket. The rates for residential property not eligible for Private Residence Relief are 18% and 28%.

Even though you may be deemed a non-resident for income tax purposes, you are treated as temporarily non-resident for capital gains tax purposes for up to 5 years. Certain gains made during that time are taxed in the year you return to the UK within five years.

Capital Gains Tax Calculation

It is worth noting the following when preparing a capital gains tax calculation:

  • You only have to pay capital gains tax on your total gains above an annual tax-free allowance.
  • You do not usually pay tax on gifts to your husband, wife, civil partner or a charity.
  • There are different rules concerning non-domiciled spouses and partners.
  • Depending on the asset, you may be able to reduce any tax you pay by claiming a relief.
  • You may also get relief if there’s a double-taxation agreement between the UK and the country where you dispose of your asset.
  • Any net capital losses can be applied before the annual exemption. Unused capital losses are carried forward against future capital gains.
  • Trusts and other structures can limit capital gains tax liability, as well as the holding and disposing of assets within a corporation

More Tax Options

Contact Hoxton Wealth

Contact us today to discover how Hoxton Wealth can help you achieve your financial goals. Together, we can build a brighter financial future.