Capital Gains Tax Allowance

Capital Gains Tax Allowance is the amount of profit you can earn from selling assets, like shares or property, without having to pay tax on it. In many countries, there is a set limit, known as an annual allowance, which lets you make gains up to that amount tax-free each year. If your profits exceed this allowance, you’ll pay tax on the excess amount. This system encourages investing and provides some tax relief, making it beneficial for individuals managing personal investments or selling valuable items.