Capital Gains Tax


Tax-free allowances for Capital Gains Tax

The annual tax-free allowance (known as the Annual Exempt Amount) allows you to make a certain amount of gains each year before you have to pay tax.

Nearly everyone who is liable to Capital Gains Tax gets this tax-free allowance.

There's one Annual Exempt Amount for:
  •  most individuals who live in the UK
  • executors or personal representatives of a deceased person's estate
  • trustees for disabled people

Most other trustees get a lower Annual Exempt Amount.

From 2015 to 2016, non-residents who dispose of UK residential property will be liable to Capital Gains Tax and, in most cases, will be able to claim the Annual Exempt Amount in the same way as for UK residents. However, this Annual Exempt Amount will not be available to companies who dispose of a UK residential property as other allowances may be claimed.

Annual Exempt Amounts

Customer group                                       2019-2020                           2018-2019                    2017-2018
    
Individuals, personal                               £12,000                                  £11,700                        £11,300
trustees for
disabled people

Other trustees                                           £6,000                                    £5,850                      £5,650
Rates for Capital Gains Tax

6th April 2017 onward:

The following Capital Gains Tax rates apply:
  • 10% and 20% tax rates for individuals (not including residential property and carried interest).
  • 18% and 28% tax rates for individuals for residential property and carried interest (the tax rate you use depends on the total amount of your taxable income, so you need to work this out first).
  • 20% for trustees or for personal representatives of someone who has died.
  • 28% for trustees or for personal representatives of someone who has died for disposals of residential property.
  • 10% for gains qualifying for Entrepreneurs' Relief.
  • 28% for Capital Gains Tax on property where the Annual Tax on Enveloped Dwellings is paid - the Annual Exempt Amount is not applicable.
  • 20% for companies (non-resident Capital Gains Tax on the disposal of a UK residential property).