A historical record of Capital Gains Tax in the UK for the tax year 2017/2018
The following information is a historical record of Capital Gains Tax in the United Kingdom for the tax year 2017/2018. The information was correct at the time of publication.
If you are looking for this tax year’s information, please visit our resources section, where you can find recent Capital Gains Tax information.
Latest tax rates & allowances
Annual exemption
| 2017/18 | 2016/17 |
|---|
| Individuals and deceased estates | £11,300 | £11,100 |
| Most trusts | 5,650 | 5,550 |
Notes
- Each individual is entitled to an annual exemption, but that exemption may be denied if he claims the remittance basis (see Personal Taxation).
- The annual exemption cannot be transferred or carried forward or back to another tax year.
Tax rate
| 2017/18 & 2016/17 |
|---|
| Residential property | Other |
| Individual – to limit of basic rate band | 18% | 10% |
| Individual – above basic rate band | 28% | 20% |
| Trusts and deceased estates | 28% | 20% |
Notes
- CGT is payable on capital gains made in the tax year, after deduction of capital losses, available reliefs and the annual exemption.
- Receipts of carried interest by venture capital investors are taxed at the same rates as residential property.
- When a chargeable asset is given away, the donor is treated as receiving the full market value and is liable for CGT accordingly.
- There is no charge on disposals between spouses or registered civil partners who are living together. On such disposals, the transferee takes over the transferor’s CGT cost.
- There is no CGT on gains accrued to the date of a taxpayer’s death. Instead, the value of the estate may be subject to Inheritance Tax (see Inheritance Tax)
Entrepreneurs’ Relief (ER)
| 2017/18 | 2016/17 |
|---|
| Lifetime limit | £10m | £10m |
| CGT on qualifying disposals | 10% | 10% |
Notes
- Disposals made by individual or certain trustees can qualify for ER.
- The asset disposed of must have been owned for at least a year and be one of:
- a business or an interest in a business
- business assets sold within three years of the business ceasing
- shares in a trading company of which the individual is an officer or employee and holds at least 5% of the ordinary share capital, or acquired the shares under an EMI scheme
- assets used by the shareholder’s personal company or partnership and sold at around the same time as 5% or more of the company’s shares or partnership interest
Investors’ relief
| 2017/18 | 2016/17 |
|---|
| Lifetime limit | £10m | £10m |
Notes
- This relief was introduced by FA 2016 and gives a 10% CGT rate to certain investors in qualifying unquoted trading companies.
- Investors cannot be paid directors or employees of the company and must hold newly issued shares (acquired on/after 17 March 2016) for 3 years from 6 April 2016.Thus the earliest date on which a qualifying disposal can be made is 6 April 2019.
- The £10m limit on qualifying gains is in addition to that available for ER.
Other CGT reliefs
| Asset | Conditions |
|---|
| Taxpayer’s only or main home | Gain is exempt for the periods the taxpayer lives there, or is deemed to live there, plus the last 18 months of ownership. |
| Chattels (tangible movable property) | If bought and sold for less than £6,000. |
| Gifts to charity | Not charged to CGT, and gifts of quoted shares and land also enjoy an income tax relief. |
| Assets which become of negligible value | Deemed to be sold at nil, to create loss, when an election is made. |
