Capital Gains Tax (CGT)
- CGT is payable by individuals, trustees and personal representatives (PRs). Companies pay corporation tax on their capital gains.
- There are annual tax-free allowances (the ‘annual exempt amount’) for individuals, trustees and PRs. Companies do not have an annual exempt amount.
- For individuals, net gains are added to total taxable income to determine the appropriate rate of tax. The standard rate applies only to the net gains which, when added to total taxable income, do not exceed the basic rate band.
- Gains which qualify for Investors’ Relief are charged at 10% for the first £10m of qualifying gains.
- Gains which qualify for Business Asset Disposal Relief are charged at 10% for the first £1 million
- Selling or gifting residential property? You may only have 60 days to file your Capital Gains Tax return and pay any tax due. Contact our office to see if this rule applies to you.
Rates and annual exemption
| Individuals | 2024/25 |
|---|---|
| £ | |
| Exemption | 3,000 |
| Standard rate | 10% |
| Higher rate | 20% |
The higher rate applies to higher rate and additional rate taxpayers.
Additionally, higher rates of 18% and 24% may apply to the disposal of certain residential property.
| Trusts | 2024/25 |
|---|---|
| £ | |
| Exemption | 1,500 |
| Rate | 20% |