Video transcript

Capital gains tax is applied at the point at which you sell an asset, that has risen in value and has therefore generated a profit.

It normally applies to 'capital assets' which are significant pieces of property such as homes, cars,investment properties, stocks, bonds, and even collectibles or art.

If you purchase these assets in what is known as a 'tax wrapper'; such as an individual savings account (ISA) or a self-invested personal pension (SIPP), you will be sheltered from paying this tax.