Glossary · Tax
Capital Gains Tax
CGT
UK tax on the gain made when disposing of an asset held outside a tax wrapper.
CGT applies to the gain, not the proceeds: the disposal value less the acquisition cost. An annual exempt amount is available before tax is due, and rates depend on the taxpayer’s income band.
Working out the acquisition cost for funds bought in tranches follows HMRC’s share identification rules — same-day disposals first, then acquisitions in the following 30 days, then the Section 104 pooled cost.
Assets held inside an ISA or SIPP are outside CGT entirely, which is the main reason the wrapper choice matters as much as the fund choice.
How we calculate it
Informational only. We don’t provide tax advice.