Capital Gains Tax (CGT) key measures included in Budget 2021 are as follows:

Annual Exempt Amount

  • The CGT Annual Exempt Amount will remain at £12,300 for individuals and £6,150 for most Trusts until April 2026 

Relief for gifts of business assets anti-avoidance for non-residents

  • Section 167(2) TCGA 1992 disapplies Gift relief where a transferee company is controlled by a person who is not resident in the UK and is Connected with the person making the disposal.
  • For disposals on or after 6 April 2021, a new measure will ensure that this anti-avoidance rule applies where a non-UK resident person gifting the asset also controls the recipient company.

Venture Capital Schemes: Extension of the Social Investment Tax Relief (SITR)

  • The government will continue to support social enterprises in the UK that are seeking growth investment by extending the operation of SITR to April 2023.
  • This will continue availability of Income Tax relief and Capital Gains Tax hold-over relief for investors in qualifying social enterprises, helping them access patient capital.

Useful guides on this topic

Budget 2021: At a glance
A summary key budget announcements together with items published without announcement.

Budget 2021: Subscriber guide
A detailed guide with links to more detail on all the key topics for SMEs and their owners.

CGT: Reliefs, disposal of a business or its assets
Which Capital Gains Tax (CGT) reliefs apply when a person, replaces or disposes of an asset used by a business, the whole or part of a business, or shares in a company.

How to calculate a capital gain or loss
This is a guide to how to compute a capital gain (or loss) for individuals and trustees.

Non-resident CGT: UK property
Capital Gains Tax, non-residents and UK property.


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