Bizarely, one of the most frequently watched videos on my YouTube channel is one from 2010,

which is simply called capital gains tax.

Says something about the people who watch my channel that, but actually not a great deal has changed since 2010 but

there are a couple of things to mention which means I need to bring that video up

to date and that's what I'm doing today. For Wealth Builders, Capital Gaines Tax is sitting there waiting to catch you out and take some

of your hard- won money off you.

But fortunately there's some things you can do about that and we're going to talk about

those next week.

But today I wanted to explain how that tax works, where we are right now, which is towards the end of the 2019

2020 tax year. So let's put five minutes on the clock here in our new

thermometer stylely on the left. Say a quick thank you to my friends at 7 Investment Management

for continuing to sponsor the show

and let's crack on.

Okay, capital gains tax, henceforth to be known as CGT

is paid when you make a gain when you realize an asset.

Now I overemphasize that to make you notice that I didn't say when you sell an asset.

CGT can be payable when you give an asset away too so we need to be

careful about that. What do I mean by an asset? It might be easier to see

potentially what is not chargeable to capital against tax even if you do sell it or give it

away or whatever.

So CGT is never charged on your principal private residence, your home.

Neither is it charged when you sell your car or anything in your home.

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