This is a tax on the increase in value of assets that are not exempt.
The way it works is that half the increase in value from when an asset is bought or received to when the assets is sold or transferred is added to the sellers other income in the financial year of the sale/transfer.
It is payable whether you receive funds for the transfer or not - so if you gift a liable asset without receiving anything, you still have to pay the tax.
Principal place of residence is exempt from capital gains tax.
Only applies to assets on which the ownership changed after 19 September 1985.
Death doesn't create a liability to pay the tax but is a change of ownership so that assets originally bought before 1985 now become liable for tax on any increases (from the date of death).
if the asset was bought by the deceased after 1985, you inherit his/her liability (if any) although you don't have to pay it until you sell or transfer the property.
if the asset was the principal place of residence of the deceased, you have up to 2 years from the date of death to sell without having to account for any increase from the date of death to the date of sale. The sale has to be completed, not just contracts exchanged, within that time. You can pocket any increase in value in that time.
if you sell after the 2 years, any increase in value from date of death to date of sale is liable for capital gains tax in the hands of the beneficiaries.
you are allowed to deduct the costs of getting the asset into your name and the sale costs.