Changes in the Capital Gain rates were announced at the 2024 Autumn Budget; these changes will be relevant for any gains after October 30th, 2024.
Capital Gain Rates from April 6th, 2024 – October 30th, 2024
General Capital Gains
- 10% for any gains that fall within an individual’s unused basic rate band
- 20% for higher rate taxpayers
Two higher rates apply to residential property disposals. These are:
- 18% for any gains that fall within an individual’s unused basic rate band
- 24% for higher rate taxpayers
Two higher rates apply to carried interest. These are:
- 18% for any gains that fall within an individual’s unused basic rate band
- 28% for higher rate taxpayers
10% rate applies to all disposals that qualify for Business Asset Disposal Relief and Investors’ Relief.
The higher rates of Capital Gains Tax of 20%, 24% and 28% apply to disposals made by trustees of settlements and personal representatives.
Capital Gain Rates from November 1st, 2024 – April 5th, 2025
General Capital Gains
- 18% for any gains that fall within an individual’s unused basic rate band
- 24% for higher rate taxpayers
Rates for residential property disposals and carried interest has not changed.
14% rate applies to all disposals that qualify for Business Asset Disposal Relief and Investors’ Relief and from April 6th, 2025, the rate will be 18%.
The higher rates of Capital Gains Tax to disposals made by trustees of settlements and personal representatives will rise to a minimum of 24%.
Capital Gains allowance is £3,000 in 2024-25 tax year.
Capital Gain Calculation in your tax return – Software Problem
HMRC have confirmed that for individuals, trustees, and personal representatives who submit their Self-Assessment returns via HMRC’s software, an additional adjustment will need to be entered on the return for gains made on or after 30 October 2024. This is because HMRC’s software will be unable to calculate gains at two separate rates and will instead be set to calculate all gains at the lower (pre-30 October 2024) rates of tax and not the new higher rates.
An adjustment is therefore required to be entered into the tax return to account for the higher rate of CGT for non-residential gains on or after 30 October 2024. The adjustment needed will be worked out by the new calculator, which is now available online.
HMRC require the calculator’s result to be saved and added to the Self-Assessment return as an attachment. Here is a link to the new calculator – https://www.gov.uk/guidance/work-out-your-capital-gains-tax-adjustment-for-the-2024-to-2025-tax-year.
