Capital Gains Tax (CGT) is charged on the ‘gain’ made on non-cash gifts when these assets are sold, such as property (other than your main home), shares and personal possessions worth at least £6,000, with the exception of cars.
When gifting property to children and other assets, they will only need to work out whether they need to pay CGT if they later dispose of the asset.
A transaction can be subject to both Capital Gains Tax and Inheritance Tax, and in this case some double tax relief may be available. In calculating the loss to the estate, no account is taken of any CGT (or any stamp duty or additional expenses) borne by the recipient of the value transferred.
In short, Capital Gains Tax is a tax on the profit received when you sell or dispose of an asset that has increased in value. The gain, or the profit, is taxed, not the amount of money you receive. For example, if you bought a painting for £1,000 but it sold for £30,000 then the gain is £29,000. You will only pay Capital Gains Tax if all your gains in a year exceed the threshold (£6000 in 2023-24).