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CG10246 | Capital Gains Tax: rates of tax – before 30 October 2024

From HM Revenue & Customs · Capital Gains Manual

Throughout this manual, all legislative references are to Taxation of Chargeable Gains Act 1992 (“TCGA92”) unless otherwise stated.

Individuals, personal representatives and trustees

For periods from 6 April 2024 to 29 October 2024

For chargeable gains arising before 30 October 2024, the following rates will apply:

  1. 10 per cent if the gains qualify for Business Asset Disposal Relief (CG63950+) or Investors’ Relief (CG63500P).

  2. 18 per cent or 24 per cent if the gains accrue on disposals of interests in residential property (see CG73550)

  3. 18 per cent or 28 per cent if the gains accrue in respect of “carried interest” under section 103KA(2) or (3) i.e. carried interest

  4. For individuals, other gains are charged at 10 per cent or at 20 per cent

  5. For personal representatives and trustees, other gains are charged at 20 per cent.

For the gains at items 2, 3 and 4 above, to the extent that the basic rate limit is not utilised by the individual’s income and by gains qualifying for Business Asset Disposal Relief and Investors’ Relief, the gain (or part) would be charged at the lower rate.

The Self Assessment Tax Return for the 2024-25 tax year will not be able to correctly calculate the amount of CGT due where there is a disposal on or after 30 October 2024 which is charged at a different rate of CGT. In this year, customers will need to use the interactive calculator to compute the additional tax due and enter this amount in the adjustments box on the Capital Gains pages of their Return, see “Work out your capital gains tax adjustment for the 2024 to 2025 tax year” for a link to the calculator.

For periods from 6 April 2016 to 5 April 2024

For chargeable gains arising before 30 October 2024, the following rates will apply:

  1. 10 per cent if the gains qualify for Business Asset Disposal Relief (CG63950+) or Investors’ Relief (CG63500P).

  2. 18 per cent or 28 per cent if the gains accrue on disposals of interests in residential property (see CG73550) or in respect of “carried interest” under section 103KA(2) or (3) i.e. carried interest

  3. For individuals, other gains are charged at 10 per cent or at 20 per cent

  4. For personal representatives and trustees, other gains are charged at 20 per cent.

For the gains at items 2 and 3 above, to the extent that the basic rate limit is not utilised by the individual’s income and by gains qualifying for Business Asset Disposal Relief and Investors’ Relief, the gain (or part) would be charged at the lower rate.

For periods from 23 June 2010 to 5 April 2016

Where chargeable gains accrue to an individual on or after 23 June 2010, those net gains accruing in a year of assessment, after taking account of losses and the annual exempt amount (CG18000c), are charged to Capital Gains Tax at 10 per cent if the gains qualify for Business Asset Disposal Relief (CG63950+). Other gains are charged at 28 per cent or at 18 per cent to the extent that the basic rate limit is not utilised by the individual’s income and by gains qualifying for Business Asset Disposal Relief and Investors’ Relief. Unused Income Tax reliefs and allowances cannot be set against the net gains.

For 2010 - 11 and subsequent years gains accruing to a person in a tax year may be chargeable to Capital Gains Tax at different rates. Thus the tax effect of losses and the annual exempt amount set off against those gains can vary. CG18000 and CG21500+ explain that, subject to any rules which limit the gains from which losses may be deducted, losses and the annual exempt amount may be set against gains in the way that is most beneficial to the individual.

Different rates of tax apply to the different categories of person. More detail on how the rates apply to individuals can be found at CG21000+

For periods before 23 June 2010

Section 4 as amended by section 8 of Finance Act 2008 - 6 April 2008 to 22 June 2010

Where chargeable gains accrue to an individual in the period from 6 April 2008 to 22 June 2010, those net gains accruing in a year of assessment, after taking account of losses and the annual exempt amount, are charged to Capital Gains Tax at 18 per cent. There is no link to the individual’s income.

Sections 4 and 6 - up to 5 April 2008

Where chargeable gains accrue to an individual up to 5 April 2008, the chargeable amount for a year of assessment, after taking account of losses and the annual exempt amount, is in effect added to income for tax purposes, and charged to tax at the same rates as if it was the top slice of income. Unused Income Tax reliefs and allowances cannot be set against these net gains.