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.

Get in touch

If you are in the Lancashire area and are looking for support and advice from a team of professional accountants and business advisers, contact Coates & Co.

Coates & Co

2 Fairhope Avenue

Bare

Morecambe

Lancashire LA4 6JZ


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ICAEW Chartered Accountants

Coates & Co is the trading name of Tony Coates & Co Limited, Registered in England, Registered Number: 6140774

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