Capital Gains Tax Exempt List

Each UK taxpayers have an annual exempt amount for Capital Gains Tax (CGT) which is lost if not used. The annual exemption for individuals in 2021-22 is £12,300.

Whilst most taxpayers are aware of the amount of annual tax-free allowance and the exemption for the qualifying sale of the family home there are other items as well that are exempt from Capital Gains Tax CGT.

These include:

• your car
• personal possessions worth up to £6,000 each, such as jewellery, paintings or antiques
• stocks and shares you hold in tax-free investment savings accounts, such as ISAs and PEPs
• UK Government or ‘gilt-edged’ securities, for example, National Savings Certificates, Premium Bonds and loan stock issued by the Treasury.
• betting, lottery or pools winnings
• personal injury compensation
• foreign currency you bought for your own or your family’s personal use outside the UK
• A husband and wife each have a separate exemption. This also applies to civil partners who are treated in the same way as married couples for CGT purposes. Married couples and civil partners should ensure that assets sold at a gain are either jointly owned or that each partner utilises their annual exempt amount wherever possible.

Have a look at our Capital gains tax services page.

Any unused part of the annual exempt amount cannot be carried forward and is forfeited if unused in the current tax year.

If you are looking to know more about this, feel free to book a free consultation.