There is currently a £12,300 per year, 0% rate tax band for capital gains. The government will reduce the nil rate Capital Gains Tax yearly allowance from £12,300 to £6,000 from April 2023.
If you have personal possessions worth £6,000 or more, apart from your car, business assets, cryptocurrency assets, investment property or shares (not inside an ISA), when you sell them or gift them away, you may be subject to capital gains tax if the yearly gain exceeds your CGT allowance (£12,300 pa but going down to £6,000 pa in April 2023 and even lower to £3,000 pa in April 2024.
Tax rates for gains above your CGT allowance are:
This means that if you plan to dispose of assets, you should consider this before your capital gains tax allowance is reduced from £12,300 pa to £6,000 pa and then to £3,000 pa. This means an extra £6,300 in gains is taxable from April 2023 and from April 2024 an extra £9,300 of gains will be taxable when compared to today
By disposing of assets in this tax year before the allowance falls to £6,000 in April 2023 you could save taxes of:
By disposing of assets in this tax year before the allowance falls to £3,000 in April 2024 you could save taxes of: