CGT is generally charged at a flat rate of 20% on most chargeable gains for individuals. However, if taxpayers are within the basic rate tax bracket and make a small capital gain, they may be eligible for a reduced CGT rate of 10%. Once their total taxable income and gains exceed the higher-rate threshold, the excess is taxed at the 20% rate.
A higher CGT rate applies to gains from the disposal of residential property (excluding a principal private residence). Basic rate taxpayers are charged 18% (2023-24: 18%), while higher-rate or additional-rate taxpayers are charged 24% (2023-24: 28%). If a gain pushes a taxpayer into the higher-rate bracket, CGT may be payable at both rates.
There is an 18% basic rate and 28% higher or additional rate that applies to gains on carried interest (the share of profits paid to asset managers).
There is an annual CGT exemption for individuals, currently set at £3,000 for 2024-25. Spouses and civil partners have their own separate exemption, with same-sex couples treated the same as married couples for CGT purposes.
Most CGT payments are typically due by 31 January following the end of the tax year in which the gain was made. However, CGT on residential property sales that do not qualify for Private Residence Relief (PRR) must be paid within 60 days of the sale.
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