It may be easier to ask which assets are not liable to capital gains tax (CGT), since in the UK you actually have to pay this tax on the majority of assets once you sell them or otherwise dispose of them. Any shares or other business assets are liable, for example, and so is property including your house. So let’s start by looking at which assets you don’t have to pay CGT on:
Anything you privately own which is worth less than £6000 is exempt from CGT. (This applies as of September 2013 anyway , though it could change in the future). This usually refers to things like jewellery, antique furniture etc, which could be considered assets if they were worth more than £6000.
Oddly enough, you don’t pay CGT on money you won through gambling, as long as you can probe that’s how you got it.
You don’t pay it on selling your car, no matter what it’s worth, as long as it’s your private car and not a business asset.
Money held in an ISA or similar government-approved personal savings account.
Money you were given in compensation for an injury, eg a car or workplace accident.
The list of assets that are liable is too long to give in full here, but these are the kinds of things you would normally have to pay CGT on if you sell or pass them on:
Property, both private and business. Your personal home is liable, but depending on your circumstances you may get Private Residence Relief on this, so it should be checked out. All other property – second homes, business premises etc – is liable.
Stocks and shares, unit trusts and some kinds of bonds (premium bonds are exempt, as are securities recognised by the government). You also still have to pay the tax on shares even if they have lost their value.
Personal valuables, such as paintings or antiques, worth over £6000. Again, if these were strictly non-business and weren’t expected to keep their worth at the time of purchase, and you can prove this, you may be exempt from the tax.
Generally, business assets are liable to CGT. You could certainly expect to pay it on any premises and equipment that you sell or dispose of, and things like your registered trademark are also included. There are various forms of exemption and relief available, though, especially if you sell an asset and reinvest it in the business, so you would need to look at all this carefully. You may also be exempt if you sell the whole business, but again it depends on your circumstances.
The other major area to consider is overseas assets. If you own land or property in a foreign country, eg a holiday home, or have shares in an overseas company, you will probably have to pay CGT on that. This does depend on where you are officially resident or domiciled though, and the laws on this are complicated so you may need to seek advice here.
This is only a general overview because the subject is very lengthy and you will need to look at it in much more detail. The best place to start looking for information is the HMRC website. If you click here and go down this page, you will find the above information given in more detail, as well as links to help you with each individual point. There are also useful contact details and links where you can seek advice on exactly what assets you have and what to do about sorting out your tax. The ‘more useful links’ section at the bottom of the page should be especially helpful.