Capital Gains Tax rates & allowances

Capital Gains Tax (CGT) rates and bands

	2020/21	2019/20	2018/19	2017/18	2016/17	2015/16	2014/15	2013/14
Standard rate (basic rate taxpayers)	10% / 18% *	10% / 18% *	10% / 18% *	10% / 18% *	10% / 18% *	18%	18%	18%
Higher rate taxpayers rate	20% / 28% *	20% / 28% *	20% / 28% *	20% / 28% *	20% / 28% *	28%	28%	28%
Business Asset Disposal Relief (Entrepreneurs' Relief) - effective rate	10%	10%	10%	10%	10%	10%	10%	10%
Annual exemption
Individual	£12,300	£12,000	£11,700	£11,300	£11,100	£11,100	£11,000	£10,900
Settlement(s) - trustees	£6,150	£6,000	£5,850	£5,650	£5,550	£5,550	£5,500	£5,450
Chattels exemption (proceeds per item or set)	£6,000
Marginal relief	5/3 excess over £6,000
Business Asset Relief (Entrepreneurs' Relief) lifetime allowance	£10 million until 11 March 2020, then £1million		£10 million

Which rate?

* The CGT rates of 10% and 20% introduced for disposals on or after 6 April 2016 do not apply to transactions involving residential property or carried interest. CGT rates for these transactions remain at 18% and 28%.

Special cases

Bitcoin and other cryptocurrencies and crypto asset gains are subject to CGT, if held as investments by individuals. See How are bitcoin, cryptocurrency or cryptocurrency assets taxed?
Regular trading in cryptocurrency may be regarded as a trading activity and not as gambling, if the badges of trade are met, see Are you trading or not (subscriber guide).
Since April 2015, non-UK residents have to pay CGT on gains realised on UK residential property. The gain taxable is restricted to any growth from the April 2015 value. Alternatively, the seller can elect to pay on a time apportionment basis if doing so would be beneficial. For example: where PRR would be available. See Non-resident CGT: residential property. Don't forget the 30-day reporting requirement.
From April 2019, non-UK residents will pay CGT on gains realised on UK property (both commercial and residential).
Executors/estates pay CGT at the higher rates of 20% and 28%.

Capital Gains Tax basic rules:

A transfer between spouses or civil partners is tax-free (made on a no gain/no loss basis).
A gift made between connected persons is treated as being made at market value.
The date of disposal needs to be determined to ensure the gain is declared in the correct tax year, particularly where proceeds are deferred or the disposal is conditional.
An interim distribution made during the liquidation or striking off process is taxed on the date the distribution is made and not the date that the company is finally wound up/struck off. It is part of a disposal of the shares.
When a disposal attracts another form of tax, such as Inheritance Tax or Income Tax, credit is generally given so there is no double charge.
The indexation allowance no longer applies to individuals and was frozen for companies at 31 December 2017.
An Income Tax trade loss may be offset against capital gains.
Capital gains may be deferred by reinvestment. See Which investment relief: IR, ER, SEIS or EIS.
Non-UK residents are not taxed on gains made on UK situs assets (other than residential property), providing that they remain non-resident for a qualifying time period.
Finance Act 2019 contains provisions to introduce a requirement for UK residents to make a payment on account of Capital Gains Tax following the completion of a UK residential property disposal. From April 2020 the payment window will be 30 days from completion of the disposal transaction.

Capital Gains Tax reliefs: Disposal of business assets.

Old Rates

	2011/12 to 2012/13	2010/11	2009/10	2008/09
Standard rate (basic rate taxpayers)	18%	18%	18%	18%
Higher rate taxpayers rate	28%	28%	18%	18%
Entrepreneurs' Relief - effective rate	10%	10%	10%	10%
Annual exemption
Individual	£10,600	£10,100	£10,100	£9,600
Settlement(s) - trustees	£5,300	£5,050	£5,050	£4,800
Chattels exemption (proceeds per item or set)	£6,000
Marginal relief	5/3 excess over £6,000
Entrepreneurs' Relief lifetime allowance	£10 million	£5 million/ £2 million until 22 June 2010	£1 million	£1 million

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