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.

2019/20 2018/19
Annual Exemption – individual £12,000 £11,700
Tax Rate where gains:-
Are within basic rate band 10%* 10%*
Exceed basic rate band 20%* 20%*
Are covered by Entrepreneurs relief 10% 10%
*The rates are increased by 8% in relation to chargeable gains on the disposal of residential property (that do not qualify for private residence relief), and carried interest.

Gains which qualify for Entrepreneurs Relief are charged at 10% for the first £10 million of qualifying gains.

Annual Exemption- Trustees £6,000 £5,850
Tax rate 20% 20%