Following several questions from our subscribers and clients regarding Capital Gains Tax, below is an ‘At a glance’ guide to Capital Gains Tax reliefs.
- What are the key Capital Gains Tax reliefs?
- Who do they apply to?
- When does Capital Gains Tax apply?
- What are the rates/bands?
- What are the exemptions?
There are numerous Capital Gains Tax reliefs in the UK. All references are to the Taxation of Chargeable Gains Act 1992 (TCGA).
Where a relief is available to an individual it is generally available to the trustees of a settlement. There are some exceptions, please speak to the Robinsons team for more information.
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What are the Capital Gains Tax rates, bands, reliefs and exemptions?
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- * The Capital Gains Tax rates of 10% and 20% introduced for disposals on or after 6 April 2016 do not apply to transactions involving Residential property or carried interest. Capital Gains Tax rates for these transactions remain at 18% and 28%.
- **Finance Act 2021 froze the annual exemption at £12,300 for individuals and £6,150 for most trusts until April 2026.
- Bitcoin and other cryptocurrencies and crypto-asset gains are subject to Capital Gains Tax, if held as investments by individuals. See How are bitcoin, cryptocurrency or cryptocurrency assets taxed?
- Regular trading in cryptocurrency may be regarded as a trading activity and not as gambling, if the badges of trade are met, see Badges of trade: Are you trading or not.
- Since April 2015, non-UK residents have to pay Capital Gains Tax on gains realised on UK residential property. The gain taxable is restricted to any growth from the April 2015 value. Alternatively, the seller can elect to pay on a time apportionment basis if doing so would be beneficial. For example: where Private Residence Relief (PRR) would be available. See Non-resident Capital Gains Tax: UK property. Don’t forget the 60-day reporting requirement which was extended from 30 days from 27 October 2021.
- Since April 2019, non-UK residents have paid Capital Gains Tax on gains realised on UK land and property (both commercial and residential).
- Executors/estates pay Capital Gains Tax at the higher rates of 20% and 28%.