Top Capital Gains Tax (CGT) is a tax on the profit made when selling or disposing of an asset that has increased in value. Understanding capital gains tax rates is essential for individuals and businesses looking to minimise tax liabilities and plan their finances effectively.
📌 What is Capital Gains Tax?
CGT applies when you sell assets such as:
🏠 Property (excluding main residence)
📈 Stocks and shares
💰 Cryptocurrency
🏢 Business assets
🎨 Valuable collectibles (art, antiques, etc.)
You are only taxed on the profit (gain) made, not the total sale price.
🔢 Capital Gains Tax Rates in the UK (2024)
CGT rates depend on your income tax band and the type of asset sold.
🏠 CGT Rates for Residential Property
If you sell a second home, buy-to-let property, or land, the rates are:
- 18% – Basic rate taxpayers (annual income below £50,270)
- 24% – Higher and additional rate taxpayers (income above £50,270)
Note: Your main home is usually exempt from CGT due to Private Residence Relief.
📈 CGT Rates for Stocks, Shares & Other Assets
For most other assets (e.g., shares, cryptocurrency, and business assets):
- 10% – Basic rate taxpayers
- 20% – Higher and additional rate taxpayers
🎯 CGT Allowances & Exemptions
Each taxpayer gets a tax-free CGT allowance before paying tax:
✅ Annual Exempt Amount (2024-25): £3,000 (previously £6,000 in 2023-24)
✅ Spouse & Civil Partner Transfers – Transfers between spouses are tax-free.
✅ Private Residence Relief – No CGT on selling your main home.
✅ Business Asset Disposal Relief – 10% tax on qualifying business sales (formerly Entrepreneurs’ Relief).
📅 When to Pay Capital Gains Tax?
If you sell a property, you must report and pay CGT within 60 days of the sale.
For other assets, CGT is reported in the self-assessment tax return (due by 31st January).
💡 How to Reduce CGT?
🔹 Use your CGT allowance before year-end
🔹 Offset losses against gains to reduce taxable profit
🔹 Gift assets to a spouse to utilise their tax-free allowance
📢 Get Professional CGT Advice!
Understanding capital gains tax rates helps you plan asset sales wisely. If you're unsure about CGT liabilities or tax-saving strategies, consult a tax professional to ensure compliance while minimising your tax bill! 💰📊✅
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