You are using an outdated browser. Upgrade your browser today for a better experience of this site and many others.
Standard and higher rates of capital gains tax (CGT) together with the annual exemption. The special rate of CGT and the limit applying for entrepreneurs’ relief purposes.
Capital Gains Tax (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 14% (10% for 2024/25) for the first £10m of qualifying gains.
Gains which qualify for 'Business Asset Disposal Relief' are charged at 14% (10% for 2024/25) for the first £1 million.
Note...
The higher rate applies to higher rate and additional rate taxpayers.
Additionally, the rates of 18% and 24% may have applied to the disposal of certain residential property throughout 2024/25.
Why not contact Maplestone Financial Services today for more information or a FREE initial consultation.
Increases to the National Living Wage and National Minimum Wage took effect from 1 April.
Chancellor Rachel Reeves announced 'no further tax increases' in the 2025 Spring Statement.