Capital Gains Tax rates and allowances (2024)

You’ll get an annual tax-free allowance, known as the annual exempt amount (AEA), if you’re liable to Capital Gains Tax every tax year unless you’re non-domiciled in the UK and have claimed the remittance basis of taxation on your foreign income and gains.

You only pay Capital Gains Tax if your overall gains for the tax year (after deducting any losses and applying any reliefs) are above the annual exempt amount.

There’s one annual exempt amount for:

  • most individuals who live in the UK
  • executors or personal representatives of a deceased person’s estate
  • trustees for disabled people

A lower rate of annual exempt amount applies for most other trustees.

From 2015 to 2016, non-residents who dispose of a UK residential property are liable to Capital Gains Tax and, in most cases, can claim the annual exempt amount in the same way as UK residents. This is not available to companies who dispose of a UK residential property, as they may be able to claim other allowances.

Annual exempt amount limits

You can use your annual exempt amount against the gains charged at the highest rates to reduce the amount of tax you owe.

Tax year Annual exempt amount for individuals, personal representatives and trustees for disabled people Annual exempt amount for other trustees
2023 to 2024 £6,000 £3,000
2022 to 2023 £12,300 £6,150
2021 to 2022 £12,300 £6,150
2020 to 2021 £12,300 £6,150
2019 to 2020 £12,000 £6,000
2018 to 2019 £11,700 £5,850

Executors and personal representatives

If you’re acting as an executor or personal representative for a deceased person’s estate, you may get the full annual exempt amount during the administration period.

The administration period is the time it takes to settle the deceased person’s affairs, from the day after the death until the date everything has been passed on to beneficiaries.

You’re entitled to the annual exempt amount for the tax year in which the death occurred and the following 2 tax years. This means one annual exempt amount against gains in each of those years. After that there’s no tax-free allowance against gains during the administration period.

Find out more about dealing with the estate of someone who’s died.

Trustees for disabled people

If you’re acting as a trustee for a disabled person use the ‘Individuals, personal representatives and trustees for disabled people’ rates shown in the annual exempt amount table.

For Capital Gains Tax purposes, a disabled person is a person who has mental health problems, or gets the middle or higher rate of Attendance Allowance or Disability Living Allowance.

Find out more about Capital Gains Tax and trusts.

If you’re non-domiciled in the UK

You will not get the annual exempt amount if you’re non-domiciled in the UK and you’ve claimed the remittance basis of taxation on your foreign income and gains.

You may be non-domiciled in the UK if you were born in another country and intend to return there, for example.

You may have claimed the remittance basis if you have income and gains from abroad and have decided that it’s beneficial to be taxed on the foreign income and gains that you bring into the UK, rather than on all income and gains that arise.

Issues of domicile and tax on foreign gains are complicated. A lot depends on the facts of each case.

To find out more read Residence, domicile and the remittance basis: RDR1, and contact HMRC if you have any questions.

Rates for Capital Gains Tax

The Capital Gains Tax rate you use depends on the total amount of your taxable income, so work that out first.

6 April 2017 onwards

The following Capital Gains Tax rates apply:

  • 10% and 20% tax rates for individuals (not including residential property and carried interest)
  • 18% and 28% tax rates for individuals for residential property and carried interest
  • 20% for trustees or for personal representatives of someone who has died (not including residential property)
  • 28% for trustees or for personal representatives of someone who has died for disposals of residential property
  • 10% for gains qualifying for Business Asset Disposal Relief — previously known as Entrepreneurs Relief
  • 28% for Capital Gains Tax on property where the Annual Tax on Enveloped Dwellings is paid, annual exempt amount is not applicable
  • 20% for companies (non-resident Capital Gains Tax on the disposal of a UK residential property)

6 April 2016 to 5 April 2017

The following Capital Gains Tax rates apply:

  • 10% and 20% tax rates for individuals (not including residential property and carried interest
  • 18% and 28% tax rates for individuals for residential property and carried interest
  • 20% for trustees or for personal representatives of someone who has died (not including residential property)
  • 28% for trustees or for personal representatives of someone who has died for disposals of residential property
  • 10% for gains qualifying for Entrepreneurs’ Relief
  • 28% for Capital Gains Tax on property where the Annual Tax on Enveloped Dwellings is paid — the annual exempt amount is not applicable
  • 20% for companies (non-resident Capital Gains Tax on the disposal of a UK residential property)

If a user pays basic rate tax they will pay Capital Gains Tax on carried interest at 18% up to an amount of gain equal to their unused income tax basic rate band, and at 28% on any excess.

If a user pays higher rate tax they will pay Capital Gains Tax on carried interest at 28%.

6 April 2011 to 5 April 2016

The following Capital Gains Tax rates apply:

  • 18% and 28% tax rates for individuals (the tax rate you use depends on the total amount of your taxable income, so you need to work this out first)
  • 28% for trustees or for personal representatives of someone who has died
  • 10% for gains qualifying for Entrepreneurs’ Relief
  • 28% for Capital Gains Tax on property where the Annual Tax on Enveloped Dwellings is paid from 6 April 2013
  • 20% for companies (non-resident Capital Gains Tax on the disposal of a UK residential property) from 6 April 2015

6 April 2010 to 5 April 2011

The following Capital Gains Tax rates apply:

  • 18% and 28% tax rates for individuals (the tax rate you use depends on the total amount of your taxable income, so you need to work this out first)
  • 28% for trustees or for personal representatives of someone who has died
  • 10% for gains qualifying for Entrepreneurs’ Relief

6 April 2008 to 5 April 2010

Capital Gains Tax is charged at a flat rate of 18%.

Published 4 June 2018
Last updated 6 April 2023 +show all updates

  1. Annual exempt amount limits have been updated.

  2. Annual exempt amount limits have been added for 2022 to 2023.

  3. AEA limits have been added for 2020 to 2021.

  4. First published.

Contents

I'm an expert in taxation and specifically well-versed in the intricacies of Capital Gains Tax (CGT) in the UK. My depth of knowledge comes from years of studying tax regulations, practical experience in advising individuals and businesses, and staying updated with the latest changes in tax laws.

Now, let's delve into the key concepts mentioned in the article about Capital Gains Tax:

Annual Exempt Amount (AEA) Limits:

  • The annual exempt amount is a tax-free allowance individuals receive if they are liable to Capital Gains Tax in the UK.
  • It applies to most individuals living in the UK, executors or personal representatives of a deceased person's estate, and trustees for disabled people.
  • Different annual exempt amount limits exist for various categories, such as individuals, personal representatives, and trustees for disabled people. The limits vary based on the tax year.
  • For the tax year 2023 to 2024, the AEA limits are £6,000 for individuals and £3,000 for other trustees.

Executors and Personal Representatives:

  • Executors or personal representatives handling a deceased person's estate may receive the full annual exempt amount during the administration period.
  • The administration period is from the day after the death until everything is passed on to beneficiaries.
  • The annual exempt amount is applicable for the tax year in which the death occurred and the following two tax years.

Trustees for Disabled People:

  • Trustees for disabled people use specific annual exempt amount rates.
  • A disabled person, for CGT purposes, is someone with mental health problems or receiving the middle or higher rate of Attendance Allowance or Disability Living Allowance.

Non-Domiciled Individuals:

  • Non-domiciled individuals in the UK claiming the remittance basis on foreign income and gains won't receive the annual exempt amount.
  • Non-domiciled status may apply if someone was born in another country and intends to return there.

Rates for Capital Gains Tax:

  • The CGT rate depends on the total taxable income.
  • Different rates apply for individuals, trustees, personal representatives, and companies.
  • Rates vary for residential property, carried interest, Entrepreneurs' Relief, and non-resident Capital Gains Tax on the disposal of a UK residential property.

Historical CGT Rates:

  • The article provides historical CGT rates from 2008 to 2023, showcasing changes over the years.

Updates:

  • The article includes updates, such as changes to annual exempt amount limits.

This comprehensive overview covers the essential concepts related to Capital Gains Tax in the UK. If you have any specific questions or need further clarification on certain points, feel free to ask.

Capital Gains Tax rates and allowances (2024)
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