Capital Gains Tax (CGT) is payable by individuals, trustees and 'personal representatives' (PRs). Companies pay corporation tax on their capital gains.

There are annual tax free allowances (the 'annual exempt amount') for individuals, trustees and PRs. Companies do not have an annual exempt amount.

For individuals net gains are added to 'total taxable income' to determine the appropriate rate of tax. The standard rate applies only to the net gains which, when added to total taxable income do not exceed the 'basic rate band'.

Gains which qualify for 'Investors' Relief' are charged at 10% for the first £10m of qualifying gains.

Gains which qualify for 'Business Asset Disposal Relief' are charged at 10% for the first £1 million.

Individuals 2021/22 2020/21
Exemption £12,300 £12,300
Standard rate 10% 10%
Higher rate 20% 20%
Trusts 2021/22 2020/21
Exemption £6,150 £6,150
Rate 20% 20%

The higher rate applies to higher rate and additional rate taxpayers.

Additionally, higher rates of 18% and 28% may apply to the disposal of certain residential property.

Quick links

Home | Contact us | Accessibility | Disclaimer | Help | Site map |


© 2021 Macey Owen Limited. All rights reserved. | Macey Owen Limited, 5 Willow Walk, Cowbridge, Vale of Glamorgan CF71 7EE

We use cookies on this website, you can find more information about cookies here.

sage online accountant