Capital Gains Tax
The following information on capital gains tax (CGT) is taken from the HM Revenue & Customs webpage and is subject to change. For full details, please visit HMRC.
Annual Exempt Amount
|Individuals, personal representatives and trustees for disabled people||£12,000|
The annual exempt amount is the amount of gains that can be made in a year before having to pay the tax.
Rates for CGT
The following Capital Gains Tax rates apply if gains exceed the annual exempt amount.
- 10% for basic rate taxpayers.
- 20% for higher rate taxpayers.
The rates rise to 18% and 28% respectively for any gain made on the disposal of residential property other than the sale of the main home of residence.
It should be noted that it is possible that a basic rate taxpayer may pay some capital gains tax at the higher rate(s) if their total gains in the year, when added to other income, exceed the higher rate tax threshold.