You may be aware that following the Budget in October last year, the main rates of Capital Gains Tax (CGT) were increased.  It is worth noting that further changes are on the way which will come into effect during 2025 and 2026.

From 30 October 2024, the main CGT rates for assets, other than residential property, increased to 18% (from 10%) for Income Tax basic rate payers, and to 24% (from 20%) for Income Tax higher rate payers.  This applies to gains on disposal of chargeable assets made on or after 30 October 2024.

For trustees and personal representatives, the CGT rate was also increased to 24% (from 20%) for disposals made on or after 30 October 2024.  The CGT rates for residential property disposals (18% and 24%) remain unchanged.

The CGT rate for Business Asset Disposal Relief and Investors’ Relief will increase from 10% to 14% for disposals made on or after 6 April 2025 and a further increase to 18% will apply for disposals made on or after 6 April 2026. 

The lifetime limit for Business Asset Disposal Relief remains unchanged at £1 million, however the lifetime limit for Investors’ Relief will be reduced from £10 million to £1 million for qualifying disposals made on or after 30 October 2024.

For more information about Capital Gains Tax and how it may affect you, please get in touch.