When looking at UK tax allowances, Capital Gains Tax (CGT) is another thing that needs to be taken into account. Each individual has a separate allowance for Capital Gains Tax, and any money that is made on gains that are subject to CGT are charged at different rates, depending on the total income of the individual for that year.
Capital Gains Tax is payable where an asset is sold at a higher value than the price that was originally paid for it. Most items that are subject to CGT come under the category of shares, precious metals and property, with possibly the most well known being the sale of a second home, in particular buy to let properties.
There have been many changes in the rates charged for Capital Gains Tax over the last few years. At one point it was charged at the highest rate of personal tax that the individual paid but this has since been changed to specific rates for CGT only. In 2011-12 the Capital Gains tax allowance for a single person amounted to £10,100. This figure had not been increased for a number of years unlike a lot of other uk tax allowances.
For any gains made after 23 June 2010 there is a different calculation of the Capital Gains Tax Rate payable, but for gains made after that date there are two rates payable, 18% and 28%, which depend on how much your total taxable earnings are for the year.