Capital gains tax: more people have to pay, so here’s what you need to know

Capital gains tax is a tax on the profit you make when you sell – or ‘dispose of’ – something that has increased in value. Photograph: Mykhailo Polenok/Alamy

Less generous rules have turned capital gains tax into a “cash machine” for the government, with income from the levy soaring by almost 80% to £24bn in the last tax year – equivalent to well over £800 a household.

A series of changes to the way the charge works means more people are being pulled into the capital gains tax (CGT) net, and not only the wealthy. And, given the scale of the change, this week experts were reminding consumers of legitimate ways to reduce a CGT bill.