Thinking of selling a rare Pokémon card? You need to understand the Capital Gains Tax implications first

Capital Gains Tax (CGT) continues to generate significant revenue for HMRC, with receipts rising by 17.6 per cent in July compared to the previous year.

As more people make money from investments, collectables and digital assets, understanding CGT has become increasingly important.

While many people associate CGT with property or shares, it can also apply to unexpected assets.

Rare Pokémon cards, for example, have sold for eye-watering sums in recent years, with some listings reaching hundreds of thousands of pounds.

Whether you’re selling a treasured collectable, shares or cryptocurrency, it is important to understand your tax obligations before completing a sale.

Understanding Capital Gains Tax

Capital Gains Tax is charged when you sell or dispose of an asset and make a profit.

The key point is that CGT is applied to the gain rather than the total amount received. In simple terms, the gain is the difference between what you originally paid for the asset and the amount you sold it for.

For the 2026/27 tax year, basic rate taxpayers pay CGT at 18 per cent, while higher and additional rate taxpayers pay 24 per cent.

There is also an annual exempt amount of £3,000 available to individuals. Gains up to this threshold can usually be realised without triggering a CGT charge.

The deadline for reporting and paying CGT depends on the type of asset sold.

If you dispose of a property that is subject to CGT, the tax must generally be reported and paid within 60 days of completion.

For disposals involving shares, cryptocurrencies and many personal possessions, gains are usually declared through Self Assessment. Any tax owed must then be paid by 31 January following the end of the tax year.

Those wishing to settle liabilities sooner can also use HMRC’s Real Time Capital Gains Tax service to report gains and make payments throughout the year.

How to minimise Capital Gains Tax liabilities

Making a profit on the sale of an asset is always good news, but failing to plan ahead can result in an avoidable tax bill.

Several strategies may help reduce the amount of CGT payable, including:

• Using a spouse or civil partner’s allowance – Assets can often be transferred between spouses or civil partners without triggering CGT. This can allow both individuals to use their annual exemptions, potentially increasing the tax-free gain available.
• Selling assets over multiple tax years – Where practical, spreading disposals across different tax years may enable you to make use of more than one annual exemption and reduce the overall tax burden.
• Offsetting losses against gains – Capital losses realised on other investments can usually be set against gains, helping to lower the amount of tax due. As the rules can be complex, professional advice is often recommended.

Careful planning before a disposal takes place can make a substantial difference to the final tax position and help ensure available reliefs are not overlooked.

How can we help?

CGT can often be tricky for those who are disposing of a sizeable asset for the first time and need to understand how it will fit into their overall tax plan.

Our accountants are here to support you through the sale to understand the most tax-efficient ways to dispose of your assets.

We can also assist you with minimising your CGT liabilities so that you don’t end up paying more than you need to.

For support with Capital Gains Tax, get in touch with our team.