Glossary
The UK tax words, explained so everyone understands
The three UK tax words — explained in plain words, with worked examples for 2026/27 and the mistake most beginners make: capital gains tax at 18 or 24 % above £3,000, dividend tax above the £500 allowance, and the £20,000 Stocks and Shares ISA where none of it applies. No advice. The rest of the glossary is the same in every country.
Tax
Tax is national. These pages are about the United Kingdom — England, Scotland, Wales and Northern Ireland alike. The rest of the glossary — P/E, ETF, RSI and the other words — is the same in every country.
Choose the country you pay tax in:🇩🇰 Danmark🇸🇪 Sverige🇳🇴 Norge🇫🇮 Suomi🇩🇪 Deutschland🇪🇸 España🇫🇷 France🇵🇱 Polska🇮🇹 Italia🇳🇱 Nederland🇧🇪 België (NL)🇧🇪 Belgique (FR)🇮🇪 Ireland🇬🇧 United Kingdom🇺🇸 United States🇮🇸 Ísland🇵🇹 Portugal🇬🇷 Ελλάδα🇨🇿 Česko🇭🇺 Magyarország🇷🇴 România🇧🇬 България🇸🇰 Slovensko🇭🇷 Hrvatska🇸🇮 Slovenija🇱🇹 Lietuva🇱🇻 Latvija🇪🇪 Eesti🇦🇹 Österreich🇨🇾 Κύπρος🇱🇺 Luxembourg🇲🇹 Malta🇺🇦 Україна🌐 English
Capital gains tax (CGT)The tax on the profit when you sell shares outside an ISA: 18 % or 24 %, after £3,000 a year tax-free.Dividend taxThe tax on dividends outside an ISA: £500 a year free, then 10.75 %, 35.75 % or 39.35 % depending on your income.Stocks and Shares ISAThe tax-free wrapper: up to £20,000 a year in, and no capital gains tax or dividend tax ever.
Written by Claus Frisch, founder of Kiggo. Not an adviser, not a bank — Kiggo explains, you decide.
