Capital gains tax

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 2021/22 2020/21
Exemption £12,300 £12,300
Standard rate 10% 10%
Higher rate 20% 20%
Trusts 2021/22 2020/21
Exemption £6,150 £6,150
Rate 20% 20%

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

Additionally, higher rates of 18% and 28% may apply to the disposal of certain residential property.

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Rochdale
CCM | Carter, Collins & Myer, Chichester House, 2 Chichester Street, Rochdale, Lancashire OL16 2AX

01706 860255


Ashton
CCM Ashton (Formerly Your Tax Shop), Suite 1.08, Clarence Arcade, Stamford St W, Ashton-under-Lyne OL6 7LT

0161 339 5989


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The term ‘Board Director’ is used to refer to a statutory director and principal of Carter Collins & Myer Ltd as registered at Companies House. Any other designations that include the term ‘Partner’ or ‘Director’ are not registered statutory directors or principals and are marketing terms used to describe representatives of the company.

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