Fuel and travel costs are pushing prices up again
Thursday 5 November 2026
Inflation has risen to 3.1%, meaning everyday spending is getting more expensive just as household budgets are already under pressure.
Capital gains tax
A tax that may be due on the gain when someone sells or otherwise gives up an asset that has risen in value.
Key term
What it means
In the UK, Capital Gains Tax can apply when you sell or otherwise dispose of something you own, such as certain investments or property, for more than it cost you. It is generally the gain, rather than the full selling price, that matters. Not every asset or gain is taxable: there are exemptions, allowances and rules about losses and costs. A rise in an asset's value alone does not normally mean you have sold it and owe this tax.
Example
You buy shares for £1,000 and later sell them for £1,300. Before any relevant costs or reliefs, the gain is £300, not £1,300. Whether any Capital Gains Tax is actually due depends on the rules that apply to you.
Why it matters
Confusing the sale price with the gain can make a potential tax bill sound much larger than the amount being considered for tax.
Also known as
CGT
Related terms
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Effective tax rate
The total tax someone pays, shown as a percentage of the income or other amount being measured.
Read more -
Inheritance tax
A UK tax that may be due on the estate of someone who has died.
Read more -
Net worth
The value of what someone owns, minus what they owe.
Read more -
Wealth tax
A proposed or existing tax on the value of wealth someone owns, often after subtracting debts.
Read more -
Windfall profits
Profits that rise unexpectedly because of an outside event rather than a planned improvement by the business.
Read more
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