CGT is a tax on capital gains arising on the disposal of an asset. A disposal can be done by way of a sale or gift of an asset, and the tax is charged on the person disposing of the asset. In simple terms, a chargeable gain arises when you dispose of an asset and what you receive (or are deemed to receive, if you dispose of the asset otherwise than under a bargain made at arm’s length) exceeds the cost of the asset plus the cost of any permanent improvements to the asset.nnCGT applies to investments and other forms of intangible assets such as shares and securities and contractual rights whether or not those rights can be assigned or transferred or have a market value. nnSome assets are exempt from CGT, and these include tangible moveable property, that is, chattels such as household goods and personal effects, which are sold for no more than £6,000 and chattels with a predictable life of 50 years or less (unless used for the purposes of a trade, profession or vocation).nnKnowing whether an investment attracts CGT is obviously important not least because a tax liability on the disposal of the investment affects your overall investment return from the asset and needs to be factored into the decision whether to invest in that particular asset in the first place. CGT is currently charged on most assets at the 10% or 20% rates, depending on whether the taxpayer is a basic rate or higher/additional rate taxpayer. Chargeable gains on disposals of residential property that do not qualify for, or are not fully covered by principal private residence relief are subject to the 18% or 24% rates. The annual exempt amount for 2024/25 is £3,000.