Capital Gains Tax (CGT) allowance is a tax allowance in the UK that allows individuals to realize a certain amount of capital gains tax-free each year. The CGT allowance is currently £12,300 per year, which means that individuals can realize up to £12,300 in capital gains each year without being required to pay CGT.

CGT is a tax that is levied on the profit that is realized from the sale of a capital asset, such as real estate, stocks, or mutual funds. The CGT allowance is intended to help offset the impact of CGT on individuals and allow them to realize some capital gains tax-free.

It is important for individuals to understand their CGT allowance and to keep track of their capital gains, as any capital gains above the allowance are subject to CGT. The CGT rate will depend on the individual's tax bracket and the length of time the asset was held.