CAPITAL GAIN TAX RATES

Capital Gain Tax Rates

The following Capital Gains Tax rates apply:

20% and 28% tax rates for individuals (the tax rate you use depends on the total amount of your taxable income, so you need to work this out first

28% for trustees or for personal representatives of someone who has died

10% for gains qualifying for Entrepreneurs Relief

Executors and personal representatives

If you are acting as an executor or personal representative for a deceased persons estate, you may get the full Annual Exempt Amount during the administration period.
The administration period is usually the time it takes to settle the deceased persons affairs and get a grant of probate (or confirmation in Scotland).

Trustees for disabled people

If you are acting as a trustee for a disabled person you use the higher Annual Exempt Amount above – and not the rate for other trustees.
A disabled person in this context is a person who has mental health problems
or receives the middle or higher rate of Attendance Allowance or Disability Living Allowance. Find out more about Capital Gains Tax and trusts

You pay a different rate of tax on gains from residential property than you do on other assets.

You don’t usually pay tax when you sell your home.

If you pay higher rate Income Tax

If you’re a higher or additional rate taxpayer you’ll pay:

  • 28% on your gains from residential property
  • 20% on your gains from other chargeable assets

If you pay basic rate Income Tax

If you’re a basic rate taxpayer, the rate you pay depends on the size of your gain, your taxable income and whether your gain is from residential property or other assets.

  • Work out how much taxable income you have – this is your income minus your Personal Allowance and any other Income Tax reliefs you’re entitled to.
  • Work out your total taxable gains
  • Deduct your tax-free allowance from your total taxable gains.
  • Add this amount to your taxable income.
  • If this amount is within the basic Income Tax band you’ll pay 10% on your gains (or 18% on residential property). You’ll pay 20% (or 28% on residential property) on any amount above this.

CAPITAL GAINS TAX ALLOWANCES

You only have to pay Capital Gains Tax on your overall gains above your tax-free allowance (called the Annual Exempt Amount).

The tax-free allowance is:

  • £11,100
  • £5,550 for Trusts

Please feel free to contact us if you require any further information.

LEGAL NOTICE AND WARNING:
The information displayed in this section should not be used as a definitive guide, since individual circumstances may vary. Specific advice should be obtained where necessary. We accept no responsibility of use of above information on your own.