If you’re wondering what the Capital Gains Tax rates are in the UK this tax year, we’ve broken it down for you, so keep reading!
You need to pay Capital Gains Tax (CGT) when you make a profit from selling valuable assets – this includes:
- Shares
- Cryptocurrencies
- Art
- Property
- Selected antiques
- Fine jewellery
Capital Gains Tax rates in the UK for 2024/25
For the 2023/2024 tax yearcapital gains tax rates are:
- 10%(18% for residential property) for your entire capital gain if youroverall annual income is below £50,270
- 20%(24% for residential property) for your entire capital gain if youroverall annual income is above the £50,270 threshold
Individuals now only have a £3,000 capital gains tax allowance. In the 2022/23 tax year, it was £12,300. This means your capital gains up to £3,000 only are tax free.
Normally youdon’t have to pay any capital tax on selling your main home.
The rate of CGT differs from income tax rates and largely depends on what asset you are selling – so your shiny jewellery will probably be taxed at a different rate than your second home.
Capital Gains Tax rates
| Type of asset | Basic rate | Higher rate |
|---|---|---|
| Shares | 10% | 20% |
| Residential property | 18% | 24% |
| Bitcoin/Cryptocurrency | 10% | 20% |
| Other | 10% | 20% |
Tax-free allowance
| Allowance for | Annual exempt amount |
|---|---|
| Individuals | £3,000 |
| Trusts | £3,000 |
Use your tax-free allowance to be more tax-efficient
Our accredited accountants can help you understand your tax position to be more tax-efficient and reduce your tax bill. Get tax advice by booking a 30-minute, 1-1 tax advice consultation today for a low-cost, one-off fee.
Capital loss
Luckily, if you’ve made a loss by selling your asset, you can report this to HMRC and you may be entitled to tax relief. This is called allowable losses, however, there is a slight catch. You cannot claim allowable losses if:
- You’ve sold or given an asset to a spouse
- You’ve sold or given an asset to a family member
- You’ve sold or given an asset to a connected person, i.e a business partner or in-laws
- You’ve sold a non-chargeable asset
Wasting assets
You won’t have to pay Capital Gains Tax on all assets you sell. Assets deemed to have a lifespan of less than 50 years are less likely to incur profit, so they are referred to as wasting assets. This includes:
- Cars
- Natural resources such as coal and natural gas
- Machinery
- Furniture
Business asset disposal relief
When you sell your business or a percentage of your business, you will have to pay Capital Gains Tax. Don’t be disheartened though! You may be entitled to a fixed CGT rate of 10% due to the business asset disposal relief – formerly known as the Entrepreneur’s Relief.
There are only two requirements to qualify for this reduction; you have to:
- Be a sole trader
- Have owned your business for two years
Still not sure if you owe CGT?
There’s nothing like speaking to a real, human expert. Get matched with your very own accredited tax accountant who will file your tax return and also give you a one-off tax advice consultation. Just £229, all in.
If you need to quickly see how much tax you need to pay view ourcapital gains tax calculator.
Your situation
Tax and profit
Your profit from
shares£20,000
£3,000 tax-free CGT allowance
?
Capital Gains Tax to pay
£3,273
Profit after tax
£16,727
How your capital gains tax is calculated
The total capital gains tax (CGT) you owe depends on two things:
- How much you earn in total
- What type of assets you sell
Your overall earnings determine how much of your capital gains are taxed at – 10% or 20%.
Our capital gains tax rates guide explains this in more detail.
In your case where your capital gains from shares were £20,000 and your total annual earnings were £69,000:
Capital gains tax (CGT) breakdown
You pay no CGT on the first £3,000 that you make
You pay £127 at 10% tax rate for the next £1,270 of your capital gains
You pay £3,146 at 20% tax rate on the remaining £15,730 of your capital gains
Tax bill amount £3,273
I want to pay by
Savings frequency
You need to save
£4.91 per day
to pay your £3,273.00 tax bill by 31/1/2026 which is in 666 days
