Capital Gains

Capital Gains Tax is due on disposal of capital assets held by an individual, trustee or personal representative. There are many reliefs available which can reduce the tax due.

After calculating a gain on a disposal or gift of an asset, annual exemptions are available which will reduce the gains chargeable. Tax due on the gain will be dependent on taxable income in the tax year.

2024/25 2023/24
Annual Exemption – individual £3,000 £6,000
Tax Rate where gains:-
Are within basic rate band 10%* 10%*
Exceed basic rate band 20%* 20%*
Are covered by Business Asset Disposal Relief (BADR) 10% 10%
*The rates are increased by 8% (4% if you are a higher rate tax payer) in relation to chargeable gains on the disposal of residential property (that do not qualify for private residence relief), and an increased 8% on carried interest.

From 27 October 2021, disposals of residential property must be notified to HMRC within 60 days after the sale and any Capital Gains Tax due must be paid at the same time.

Gains which qualify for Business Asset Disposal Relief are charged at 10% for the first £1 million of qualifying gains.

Annual Exemption- Trustees £1,500 £3,000
Tax rate 20% or 24% for residential property 20% or 28% for residential property