Don’t risk HMRC fines.
If you’re wondering what the Capital Gains Tax rates are in the UK this tax year, we’ve broken it down for you, so keep reading!
You need to pay Capital Gains Tax (CGT) when you make a profit from selling valuable assets – this includes:
For the 2022/2023 tax year capital gains tax rates are:
Individuals have a £12,300 capital gains tax allowance. This means your capital gains up to £12,300 are tax free.
The rate of CGT differs from income tax rates and largely depends on what asset you are selling – so your shiny jewellery will probably be taxed at a different rate than your second home.
Folks, things have changed. After November’s Autumn Budget, some changes (and freezes) to personal tax rates and thresholds have been announced, including CGT, Income Tax, National Insurance, Inheritance Tax, Dividends and more. Check out our blog to learn about the changes in detail.
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|Allowance for||Annual exempt amount|
Luckily, if you’ve made a loss by selling your asset, you can report this to HMRC and you may be entitled to tax relief. This is called allowable losses, however, there is a slight catch. You cannot claim allowable losses if:
You won’t have to pay Capital Gains Tax on all assets you sell. Assets deemed to have a lifespan of less than 50 years are less likely to incur profit, so they are referred to as wasting assets. This includes:
When you sell your business or a percentage of your business, you will have to pay Capital Gains Tax. Don’t be disheartened though! You may be entitled to a fixed CGT rate of 10% due to the business asset disposal relief – formerly known as the Entrepreneur’s Relief.
There are only two requirements to qualify for this reduction; you have to:
We can help. We offer a pay-as-you-go tax accountant service for £229, all in. Speak to a CGT accounting expert if you need one-off tax advice on your personal tax situation, and get your tax return filed as well, all by a friendly, accredited accountant.
If you need to quickly see how much tax you need to pay view our capital gains tax calculator.
Your total capital gains tax (CGT) owed depends on two main components:
Your overall earnings determine how much of your capital gains are taxed at 10% or 20%.
Our capital gains tax rates guide explains this in more detail.
In your case where capital gains from shares were £20,000 and your total annual earnings were £69,000:
You pay no CGT on the first £12,300 that you make
You pay £127 at 10% tax rate for the next £1,270 of your capital gains
You pay £1,286 at 20% tax rate on the remaining £6,430 of your capital gains
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