Capital Gains Tax
Capital Gains Tax
Capital Gains Tax is a tax on the profit when you sell (or ‘dispose of’) something (an ‘asset’) that’s increased in value
It’s the gain you make that’s taxed, not the amount of money you receive.
You only have to pay Capital Gains Tax on your overall gains above your tax-free allowance (called the Annual Exempt Amount).
The Capital Gains tax-free allowance is:
- £12,300
- £6,150 for trusts
- When to report and pay
- You must report any capital gains and pay any money you owe by the deadline.
Date of sale (or ‘disposal’) | When you must report and pay | |
If you sold a residential property in the UK with a completion date on or after 27 October 2021 | Within 60 days | |
If you sold a residential property in the UK with a completion date between 6 April 2020 and 26 October 2021 | Within 30 days | |
If you have other gains to report | In the tax year after you sold or disposed of an asset if you use a Self Assessment tax return. If you’re eligible, you may be able to use the ‘real time’ Capital Gains Tax service to report by 31 December in the tax year after the sale | |
Capital Gains Tax: Individuals and Trustees | 2022-23 | 2021-22 |
Annual exempt amount | ||
Individuals | £12,300 | £12,300 |
Trusts | £6, 150 | £6, 150 |
Rates | ||
Standard rate taxpayers | 10% | 10% |
Higher rate taxpayers / Trustees | 20% | 20% |
Limit for gains subject to Business PropertyRelief | £,1,000,000 | £,1,000,000 |
Business Property Relief rate | 10% | 10% |
Investors’ relief lifetime limit | £10,000,000 | £10,000,000 |
Investors’ relief rate | 10% | 10% |
Sale of residential property Basi rate tax payer | 18% | 18% |
Sale of residential property by Higher rate tax payer | 28% | 28% |
