Capital Gains Tax (CGT) receipts were up 17.6 per cent in July compared to July 2025, highlighting the growing importance of understanding the tax implications of asset sales.
Thousands of asset disposals must have CGT paid on them, including cryptocurrency and rare trading cards.
There are currently some Pokémon cards for sale on eBay listed for hundreds of thousands of pounds. For sellers, they must understand CGT implications, when they must pay it and how to minimise their tax bill.
What is Capital Gains Tax and when do I pay it?
CGT is a tax that is applied to any assets sold where you have made a monetary gain from the original purchase price.
You do not pay CGT on the total amount the asset is sold for. Instead, the tax is based on the gain you have made, meaning essentially, the difference between what you paid for the asset and what you sold it for.
The UK CGT rate for the 2026/2027 tax year is 18 per cent for basic rate Income Taxpayers and 24 per cent for higher and additional rate payers.
Individuals have a £3,000 annual exempt allowance, meaning that you can make up to £3,000 of profit before the rates kick in.
If you have disposed of property, CGT must be paid within 60 days of the property’s completion date.
However, with shares, personal assets and cryptocurrencies, the gain must be reported through your annual tax returns and paid by 31 January following the end of the tax year in which you made the profit.
There is also the option to pay CGT through the HMRC Real Time Capital Gains Service, which allows you to report and pay CGT as you owe it.
How can you reduce Capital Gains Tax liabilities?
If you have luckily stumbled across an ultra-rare Pokémon card or if you chose a good stock market investment, you may want to sell these assets.
Should this be the case, there are ways to minimise your CGT liabilities so that you can mitigate against a high CGT bill. Some options include:
- Spousal splitting – You and your spouse or civil partner can combine your £3,000 allowance if the asset is shared, giving you an effective CGT allowance of £6,000 on any assets disposed of.
- Sale staggers – If you can stagger the sale of assets across two tax years, you can take advantage of two years of CGT allowances.
- Loss offsets – You can offset any losses made on other assets against your gains. This can often be tricky and special rules may apply, so it is advisable to speak with an accountant beforehand.
It is important to understand the most tax-efficient ways to dispose of an asset so that you don’t have to pay more CGT than you need to.
How can we help?
CGT can often be tricky for those who are disposing of a sizeable asset for the first time and need to understand how it will fit into their overall tax plan.
Our accountants are here to support you through the sale to understand the most tax-efficient ways to dispose of your assets.
We can also assist you with minimising your CGT liabilities so that you don’t end up paying more than you need to.
For support with Capital Gains Tax, get in touch with our team.
