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Capital Gains Tax
Your concise guide to key facts and figures.
In the tax year 2024/2025, an individual’s CGT allowance is £3000.
This means you do not have to pay tax on gains from buying and selling shares or other investments during the tax year up to that amount. You do not normally have to pay tax on any gain you make when you sell your main residence.
2023/2024 |
2024/2025 |
|
For standard rate taxpayers(1) |
10% |
10% |
For trustees and higher/additional rate taxpayers(1) |
20% |
20% |
Annual exempt amount - individuals |
£6,000 |
£3,000 |
Annual exempt amount - trusts |
£3,000 |
£1,500 |
Entrepreneurs' relief lifetime limit |
£1,000,000 |
£1,000,000 |
Entrepreneurs' rate |
10% |
10% |
(1). These rates do not apply to transactions involving residential property (the sale of second homes) or carried interest (the share of profits or gains that is paid to asset managers). CGT rates for these transactions remain at 18% (standard rate taxpayers) and 28% (higher rate taxpayers).
If you have used your CGT allowance, don't forget your Individual Savings Account (ISA) allowance. Both a 'Cash ISA' and a 'Stocks and Shares ISA' can shelter capital gains on investments, for example unit trust holdings, worth up to £20,000 per year.
From 6th April 2008 Taper Relief was removed and a new relief called 'Entrepreneurs' relief' was introduced to reduce the Capital Gains Liabilities on the disposal of certain business assets.
CGT is a tax on capital 'gains'. If when you sell or give away an asset it has increased in value, you may be taxed on the 'gain' (profit). This doesn't apply when you sell personal belongings worth £3,000 or less or, in most cases, your main home.
You may have to pay CGT if, for example, you:
You don't have to pay CGT on:
Important Considerations:
For further information about the 2024 Budget changes please click here.
TAX TREATMENT VARIES ACCORDING TO INDIVIDUAL CIRCUMSTANCES AND IS SUBJECT TO CHANGE.
THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE ADVICE ON ESTATE PLANNING.
THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE SOME FORMS OF TAXATION.
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