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Explainer details how capital gains tax works and key upsides, downsides
A Guardian Business explainer outlines how capital gains tax (CGT) applies when people sell assets such as shares, businesses, or buy to let property, with the tax calculated on the uplift in value since purchase.
The piece notes CGT can be reduced through deductions including losses from other investments and costs related to improving a property, while emphasizing CGT as a tax on realized profits when an asset is sold.
It also states that the current CGT rates are 18% for basic rate taxpayers and 24% for higher rate taxpayers, and frames CGT as a widely cited potential revenue raising option as UK chancellor John Healey prepares for a tough budget next month.
The explainer cites HMRC data showing CGT revenue rose 89% in 2024 to 2025 after changes in tax policy.