Capital gains tax

Capital Gains Tax (CGT) is payable by individuals, trustees and 'personal representatives' (PRs). Companies pay corporation tax on their capital gains.

There are annual tax free allowances (the 'annual exempt amount') for individuals, trustees and PRs. Companies do not have an annual exempt amount.

For individuals net gains are added to 'total taxable income' to determine the appropriate rate of tax. The standard rate applies only to the net gains which, when added to total taxable income do not exceed the 'basic rate band'.

Gains which qualify for 'Entrepreneurs' Relief' or 'Investors' Relief' are charged at 10% for the first £10m of qualifying gains.

Individuals 2018/19 2017/18
Exemption £11,700 £11,300
Standard rate 10% 2 10% 2
Higher rate 1 20% 2 20% 2
Trustees 2018/19 2017/18
Exemption £5,850 £5,650
Rate 20% 20%

Note...

  1. For higher and additional rate taxpayers.
  2. Higher rates of 18% and 28% may apply to the disposal of certain residential property.

© 2018 Advantage Law. All rights reserved.


Advantage Law Limited t/a Advantage Law is a limited company registered in England and Wales. Company No. 7333121. Advantage Law is Authorised and Regulated by the Solicitors Regulation Authority for its Legal Services. SRA No. 565383. VAT reg. 203559621. Registered office: Catherine House, Coventry Road, Hinckley, LE10 0JT A list of Directors is available on request.
Legal Aid logo Lexcel logo Ask a solicitor logo