Capital gains tax rates

The government is to reduce the higher rate of CGT from 28% to 20% and the basic rate from 18% to 10%.

The current rates of capital gains tax (CGT) are 18% to the extent that total taxable income does not exceed the basic rate band and 28% thereafter.

The government is to reduce the higher rate of CGT from 28% to 20% and the basic rate from 18% to 10%. The trust CGT rate will also reduce from 28% to 20%.

The 28% and 18% rates will continue to apply for carried interest and for chargeable gains on residential property that do not qualify for private residence relief. In addition, the 28% rate still applies for ATED related chargeable gains accruing to any person (principally companies).

These changes will take effect for disposals made on or after 6 April 2016.

The rate for disposals qualifying for Entrepreneurs' Relief (ER) remains at 10% with a lifetime limit of £10 million for each individual.

Have we convinced you yet?

Please feel free to get in touch via phone email or our quick contact form.

We offer initial free consultations simply contact us to find out more.

Harrow logoXero logoICAEW logoIPSE logo