Capital Gains Tax can arise in more situations than simply selling an investment for a profit. Giving an asset to a family member, transferring ownership, exchanging one investment for another or selling something for less than its full value can all count as disposals for Capital Gains Tax purposes.
The tax is charged on the gain rather than the total amount received. However, the amount ultimately payable depends on several factors, including the type of asset, its original cost, your income, previous losses, available tax reliefs and who receives the asset.
The timing of a transaction can also affect the result.
HMRC’s latest available annual statistics show that 378,000 taxpayers incurred Capital Gains Tax liabilities of £12.1 billion in 2023/24, based on total taxable gains of £65.9 billion. These remain the latest complete annual figures available as at 7 August 2026, with HMRC’s next annual statistical release expected later in 2026.
If you are considering selling, gifting or transferring a valuable asset, working out the tax position before committing to the transaction can prevent unexpected bills and identify reliefs that may otherwise be missed.