PrivateTechSharesHome › Glossary › UK capital gains tax (CGT)
🇪🇺 Europe · EuropeUK capital gains tax (CGT)
Also called: capital gains tax UK, CGT
In one line
The UK tax on the profit from selling shares, often the favourable treatment EMI options are designed to secure.
In plain English
When you sell shares in the UK, the gain above your annual allowance is taxed as CGT — usually lower than income tax. EMI and some schemes are built to keep gains in this favourable band.
If you were explaining it to a 5-year-old
The British tax on the profit when you sell your toy — usually a gentler bite than the tax on pocket money.
Why it matters when you sell
Whether your UK equity gain falls under CGT or income tax hugely affects your take-home from a sale.
Related terms
Put it to use
When you're ready to go deeper, there's an optional Equity Toolkit and Report.
Sources
Primary references for this term: UK Government / HMRC (gov.uk). Our definitions are written in plain English and kept evergreen — see the glossary methodology. General information, not advice.
Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.