The Capital Gains Tax allowance is the amount of capital gain that is tax-free. In the 2019/2020 tax year, this amount was £12,000. Now, in the 2021/22 tax year,  it’s £12,300.

You only have to pay Capital Gains Tax (CGT) on the profits that go above this tax-free amount.

A few things to remember about the CGT allowance:

• If you own these assets (that you just sold) together with another person, you can use both of your allowances together
• If you don’t use your CGT allowance in a given tax year, you can’t carry it forward to the next year
• The CGT allowance is not related to your Personal Allowance. The Personal Allowance is only for other kinds of earnings (salary, self-employment income, rental income, etc.)