What are Capital gains?
When you sell valuable assets, that have a value of more than £6,000, you will need to pay Capital Gains Tax. These assets could include shares and property.
Recently, the government has decided that the annual exemption for Capital Gains will be reduced from £12,300 to £6,000 for 2023-24. Then it will be further reduced to £3,000 in 2024-25.
This means if you sell an asset for £7,000, you will only need to pay Capital Gains Tax on £1,000, in 2023-24.
The annual exemption for Capital Gains being lowered will mean that more individuals will need to report their Capital Gains on their self-assessment return.