⚠️ Important notice: The following information is a
historical record of
Capital Gains Tax 2018/19 in the United Kingdom. The information was correct at the time of publication but may no longer be accurate.
If you need
current tax rates and allowances, you can visit:
➡️
Latest tax rates and allowances ➡️
Resources section Annual Exempt Amount (AEA)
| 2018/19 | 2017/18 |
|---|
| Individuals and deceased estates | £11,700 | £11,300 |
| Most trusts | 5,850 | 5,650 |
Notes
- Each individual is entitled to an AEA, but that exemption may be denied if they claim the remittance basis (see Personal Taxation).
- The AEA cannot be transferred, nor carried forward or back to another tax year.
Tax rate
| 2018/19 & 2017/18 |
|---|
| 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.
Entrepreneurs’ Relief (ER)
| 2018/19 | 2017/18 |
|---|
| Lifetime limit | £10m | £10m |
| CGT on qualifying disposals | 10% | 10% |
Notes
- Disposals made by an 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 either 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 either the company’s shares or the partnership interest.
Investors’ relief
| 2018/19 | 2017/18 |
|---|
| Lifetime limit | £10m | £10m |
Notes
- This relief 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 a minimum period of 3 years beginning on/after 6 April 2016. Thus the earliest date on which a qualifying disposal can be made is 6 April 2019.
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. |
