UK households face capital gains tax bill from HMRC after 'overlooking' asset

A string of 'lesser-known' things that could trigger a Capital Gains Tax bill have been revealed - after some UK households "overlook" certain assets. Capital Gains Tax is a tax on the profit when you sell (or ‘dispose of’) something (an ‘asset’) that’s increased in value. It’s the gain you make that’s taxed, not the amount of money you receive. For example, if you bought a painting for £5,000 and sold it later for £25,000, you’ve made a gain of £20,000 (£25,000 minus £5,000). Sarah Coles, head of personal finance at Hargreaves Lansdown, explained: "Capital gains tax is the Luke Hemsworth of tax threats. It’s far less well-known than its tax siblings and yet carries some serious muscle.