Capital Gains Allowance Rates 2023

Published / Last Updated on 06/04/2023

Capital Gains Allowance and Rates Tax Year 2023
(06/04/2023 to 05/04/2024)

Annual Exemption for Individuals £6,000.00

  • Individuals, husband and wife spouses and civil partners all have their own exemption.
  • This means that you can realise adjusted gains each year to the value of the allowance with no liability to taxes.

Rates of Capital Gains Tax CGT: Individuals - Chargeable gains are added to your taxable income. 

  • Standard Rate 10.00 %:  If your combined income and adjusted capital gain when added together, stays within the basic rate threshold, the capital gains tax CGT rate is 10.00 % of the chargeable gain.
  • Higher Rate 20.00 %: If all or part of the gain when added to income is in higher rate tax threshold, the CGT tax rate is 20.00 % of the gain over higher rate income tax threshold and 10.00 % of the gain below the threshold (if any).

Rates of Capital Gains Tax CGT: Individuals on UK Investment/Residential Property - Chargeable gains are added to your taxable income but are payable as a separate return and on different dates.

  • Standard Rate 18.00 %
  • Higher Rate 28.00 %

See CGT Rates and Dates: Capital Gains

Annual Exemption for Trusts - £3,000.00

This means a trust can realise adjusted gains each year to the value of the allowance with no liability to taxes.  Normally the allowance is for all trusts created by the same person i.e.  there is only one allowance for all trusts.  The rate of tax charged on a trust is 20.00 %.

Annual Exemption - Businesses

Nil - there is no annual exemption, all gains are deemed as trading receipts and taxable at normal business or corporation tax rates.

Entrepreneurs Relief Rate for Business Assets.

CGT rate of 10.00 % of the chargeable gain is charged as a concession on the sale of  trading businesses and shares with a cumulative lifetime allowance for the individual as follows:

  • 06/04/2011 - onwards business gain disposals up to £10m
  • 23/06/2010 - 05/04/2011 business gain disposals up to £5m
  • 06/04/2010 - 22/06/2010 business gain disposals up to £2m
  • 06/04/2008 - 05/04/2010 business gain disposals up to £1m

Note: Capital Gains Tax for business disposals in excess of the above entrepreneurs relief limits is charged withing basic rate income tax bands at 10.00 % and 20.00 % for gains added to income in the higher rate tax bands.

Withdrawal of Tiered Rates and Taper Relief Before 5 April 2008:

  • Taxes used to be levied based upon your highest rates of income tax.  for 2007/2008 and was tiered at: Lower rate taxpayers -10% capital gains tax, CGT Basic rate taxpayers - 20% capital gains tax CGT and Higher rate taxpayers - 40% capital gains tax CGT).  Taper relief has also been abolished.
  • Rates of Tax - Trusts - The rate applicable to trusts was based upon the trustee and was tax up to 40% for certain types of income/gain to the trust.

Useful Links

None Residential Property Capital Gains Tax.  Our Fees: CGT Non UK Property

Residential Property Capital Gains Tax.  Our Fees: CGT UK Property

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