- 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% for the first £1m of qualifying gains.
- Gains which qualify for Business Asset Disposal Relief are charged at 14% for the first £1 million.
Rates and annual exemption
| Individuals | 2025/26 |
|---|---|
| £ | |
| Exemption | 3,000 |
| Standard rate | 18% |
| Higher rate | 24% |
The higher rate applies to higher rate and additional rate taxpayers.
Additionally, prior to 30 October 2024 higher rates of 18% and 24% may apply to the disposal of certain residential property.
| Trusts | 2025/26 |
|---|---|
| £ | |
| Exemption | 1,500 |
| Rate | 24% |
2024/25
- 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 (£1m for disposals on or after 30 October 2024).
- Gains which qualify for Business Asset Disposal Relief are charged at 10% for the first £1 million.
Rates and annual exemption
| Individuals | 2024/25 (until 29/10/2024) | 2024/25 (from 30/10/2024) |
|---|---|---|
| £ | £ | |
| Exemption | 3,000 | 3,000 |
| Standard rate | 10% | 18% |
| Higher rate | 20% | 24% |
The higher rate applies to higher rate and additional rate taxpayers.
Additionally, prior to 30 October 2024 higher rates of 18% and 24% may apply to the disposal of certain residential property.
| Trusts | 2024/25 (until 29/10/2024) | 2024/25 (from 30/10/2024) |
|---|---|---|
| £ | £ | |
| Exemption | 1,500 | 1,500 |
| Rate | 20% | 24% |
Disclaimer
This publication is published for the information of clients. It provides only an overview of the regulations in force at the date of publication and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this publication can be accepted by the authors or the firm.