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J R Watson & Co Accountants

Northampton: 01604 630745 Rugby: 01788 575037 Email us

Capital gains tax

Standard and higher rates of capital gains tax (CGT) together with the annual exemption. The special rate of CGT and the limit applying for entrepreneurs’ relief purposes.

  1. Resources
  2. Tax rates & allowances

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 'Investors' Relief' are charged at 10% for the first £10m of qualifying gains.

Gains which qualify for 'Business Asset Disposal Relief' are charged at 10% for the first £1 million.

Individuals 2022/23 2021/22
Exemption £12,300 £12,300
Standard rate 10% 10%
Higher rate 20% 20%
Trusts 2022/23 2021/22
Exemption £6,150 £6,150
Rate 20% 20%

The higher rate applies to higher rate and additional rate taxpayers.

Gains accruing on the disposal of certain residential property and arising on carried interest can attract a standard rate of 18% or a higher rate of 28% for individuals and of 28% for Trusts and Personal Representatives.

Capital allowances Capital gains tax Child benefit Corporation tax Income tax Individual Savings Account (ISA) Inheritance tax Minimum wage National insurance Pensions Stamp duty & land taxes Statutory pay Tax reliefs for individuals Value added tax Vehicles

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Northampton Office: Chancery House, 52 Sheep Street, Northampton, Northamptonshire NN1 2LZ
Rugby Office: Sir Frank Whittle Business Centre, Great Central Way, Rugby, CV21 3XH

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