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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 '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.

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Clay Shaw Butler, 24 Lammas Street, Carmarthen, Carmarthenshire SA31 3AL

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Clay Shaw Butler is the trading name of Clay Shaw Butler Limited.
Registered in England and Wales. Company No. 6519528. Registered to carry on audit work in the UK and Ireland and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales.
Details about our audit registration can be viewed at www.auditregister.org.uk under reference C001742711.
The registered office address is 24 Lammas Street, Carmarthen, Carmarthenshire SA31 3AL.