Capital gains tax allowance 2024/25 | what is the current CGT rate
The capital gains tax allowance 2024/25 sets the threshold at £3,000 for individuals, significantly lower than previous years. This reduction means more taxpayers will now be liable for Capital Gains Tax (CGT) on profits made from selling assets. Understanding the current rates and allowances is crucial to effective tax planning and ensuring compliance with HMRC regulations.
Standard CGT Rates (Non-Property Assets)
- 10%: For individuals who are basic rate taxpayers and the gain remains within the basic rate tax band.
- 20%: For higher and additional rate taxpayers, or if the gain exceeds the basic rate threshold.
These rates apply to most chargeable assets, such as:
- Shares (not in ISAs)
- Business assets
- Personal possessions worth over £6,000 (except cars)
CGT on Residential Property (Non-Main Residence)
A higher rate of CGT applies to gains from the disposal of residential property that does not qualify for Private Residence Relief (PRR).
Rates for 2024–25:
- 18% on gains within the basic rate band.
- 24% on gains above the basic rate band.
- (Note: The higher rate was reduced from 28% to 24% in the Spring Budget 2024.)
If the gain straddles the tax bands, it is apportioned: some taxed at 18%, the rest at 24%.
Carried Interest Gains
Carried interest (commonly applicable to investment fund managers) continues to be subject to:
- 28% CGT rate for higher/additional rate taxpayers.
- 18% for basic rate taxpayers.
These rates remain unchanged for the 2024–25 tax year.
CGT Payment Deadlines
- For most CGT liabilities, payment is due by 31 January following the end of the tax year in which the gain was made.
- However, for residential property disposals, the CGT must be reported and paid within 60 days of the date of completion. This applies only if Private Residence Relief does not apply.
Annual CGT Exemption (Annual Exempt Amount)
- 2024–25 exemption: £3,000 per individual.
- (Reduced from £6,000 in 2023–24).
- Spouses and civil partners each receive their own exemption, allowing for £6,000 combined.
How can we help?
If you need assistance navigating the complexities of the capital gains tax allowance 2024/25 and the applicable CGT rates, contact Moore South today. Our expert team can help you optimise your tax position and ensure you meet all legal requirements with confidence.