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What are Capital Gains Tax rates in UK?

  • 3 min read
  • Last updated 20 Sep 2022

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:

  • Shares
  • Cryptocurrencies
  • Art
  • Property
  • Selected antiques
  • Fine jewellery

Capital Gains Tax rates in the UK for 2022/23

For the 2022/2023 tax year capital gains tax rates are:

  • 10% (18% for residential property) for your entire capital gain if your overall annual income is below £50,270
  • 20% (28% for residential property) for your entire capital gain if your overall annual income is above the £50,270 threshold

Individuals have a £12,300 capital gains tax allowance. This means your capital gains up to £12,300 are tax free.

Normally you don’t have to pay any capital tax on selling your main home.

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

Capital Gains Tax rates

Type of assetBasic rateHigher rate
Shares10%20%
Residential property18%28%
Bitcoin/Cryptocurrency10%20%
Other10%20%

Tax-free allowance

Allowance forAnnual exempt amount
Individuals£12,300
Trusts£6,150

Capital loss

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’ve sold or given an asset to a spouse 
  • You’ve sold or given an asset to a family member
  • You’ve sold or given an asset to a connected person, i.e a business partner or in-laws
  • You’ve sold a non-chargeable asset 

Wasting assets

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:

  • Cars
  • Natural resources such as coal and natural gas
  • Machinery
  • Furniture

Business asset disposal relief

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:

  • Be a sole trader
  • Have owned your business for two years

Still not sure if you owe CGT?

We can help. We offer one-off, personal tax advice from an accredited accountant. Speak to  CGT accounting expert and clear up any confusion. Just £119 per consultation with no strings attached. Learn more.

If you need to quickly see how much tax you need to pay view our capital gains tax calculator.

Your situation

Outlined number oneOutlined number one
How did you make money?
Profit from capital gains
Annual salary
?
Other income
?

Tax and profit

Outlined number two
  • Your profit from
    shares
    £20,000
    Incl. £12,300 tax-free CGT allowance
    ?
  • Capital Gains Tax to pay
    £1,413
  • Profit after tax
    £18,587

How your capital gains tax is calculated

Your total capital gains tax (CGT) owed depends on two main components:

  1. How much you earn in total
  2. What type of assets you sell

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:

Capital gains tax (CGT) breakdown

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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