This is the tax you may pay on any profit made on some investments when you sell or cash them in. You don’t normally pay Capital Gains Tax (CGT) on the whole profit.

The good news is that each year you have a CGT allowance, and if your gain is less than the allowance, you’ll have no CGT to pay.

Any profit you make when you sell your home is usually free from CGT, although you may have to pay it on any additional properties you own such as buy-to-let investments.

Knowing when you have to pay CGT, calculating how much and knowing how to reduce or avoid it can be tricky to get your head around. So the best advice we can give you is to speak to the HM Revenue & Customs or a tax adviser if you think there’s a chance you could be liable. They will be able to tell you if you are, and how much you are likely to have to pay.