Capital gains tax

Standard and higher rates of capital gains tax (CGT) together with the annual exemption. The special rate of CGT and the limit applying for entrepreneurs’ relief purposes.

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 'Entrepreneurs' Relief' are charged at 10% for the first £1 million.

Individuals 2023/24 2022/23
Exemption £6,000 £12,300
Standard rate 10% 10%
Higher 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.

Trusts 2023/24 2022/23
Exemption £3,000 £6,150
Rate 20% 20%

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Millet Accountants Ltd, Beyond Aldgate Tower, 2 Leman Street, London, E1 8FA

Millet is the trading name for Millet Accountants Ltd.
Registered office: Beyond Aldgate Tower, 2 Leman Street, London E1 8FA
Registered in England and Wales, Company number 07950802
A firm of Chartered Accountants registered to carry on audit in the UK by the Institute of Chartered Accountants in England and Wales.
Director: Andrew Millet BA MBA FCA

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