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  • Home
  • About Us
  • Services
    • Financial Planning
    • Business Insurance
      • Introduction to Business Insurance
      • Pensions & Capital
      • Key Person
      • Employers' Liability
      • Professional Indemnity
      • Income Protection
      • Share Protection
      • Directors' & Staff Benefits
    • Wealth Management
      • Introduction to Wealth Management
      • Relationship Management
      • Lasting Power of Attorney
      • Trust Information
      • Wills
    • Mortgages
      • Introduction to Mortgages
      • Mortgage Repayment
      • First Time Buyer
      • Remortgaging
      • Standard Variable Rate Mortgages
      • Fixed Rate Mortgages
      • Tracker Mortgages
      • Cashback Mortgages
      • Offset Mortgages
      • Second Charge Mortgages
      • Buy to Let
      • Self Build Mortgages
    • Life Assurance
      • Introduction to Life Assurance
      • Level Term
      • Increasing Term
      • Decreasing Term
      • Renewable Term
      • Family Income Benefit
    • Health Insurance
      • Introduction to Health Insurance
      • Private Medical
      • Critical Illness
      • Income Protection
    • General Insurance
      • Introduction to General Insurance
      • Household
      • Shops & Commercial
      • Holiday Insurance
      • Motor
      • Caravan
      • Marine
      • Pet
    • Equity Release
      • Introduction to Equity Release
      • Types of Equity Release
      • Lifetime Mortgage
      • Drawdown Lifetime Mortgage
      • Home Income Plan
      • Home Reversion Plan
      • Costs
    • Pensions
      • Introduction to Pensions
      • Occupational
      • Annuities
      • National Employment Savings Trust (NEST)
      • SSAS
      • Personal
      • SIPP
      • State Pension
      • Stakeholder
      • Executive Pension Plan
    • Savings & Investments
      • Introduction to Savings & Investments
      • Unit Trusts
      • Collectives
      • Equities
      • With-profits
      • Fixed Interest Investments
      • Capital Investment Bonds
      • National Savings Products
      • ISAs
      • Junior ISAs
      • OEICs
      • Investment Trusts
      • Offshore Collectives
    • Taxation
      • Introduction to Taxation
      • Income Tax
      • Capital Gains Tax
      • Inheritance Tax
  • Online Services
    • Research Links
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  • Testimonials
  • Contact Us

Give us a call on 033 33 447 300 or drop us a message

Contact Us Today

Capital Gains Tax

TAX TREATMENT VARIES ACCORDING TO INDIVIDUAL CIRCUMSTANCES AND IS SUBJECT TO CHANGE.

THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE ADVICE ON ESTATE PLANNING AND TAX PLANNING.

Capital Gains Tax Allowances, Liabilities & Reliefs

In the tax year 2020/2021, an individual's CGT allowance is £12,300 (2019/20 - £12,000).

This means you do not have to pay tax on gains from buying and selling shares or other investments during the tax year up to that amount. You do not normally have to pay tax on any gain you make when you sell your main residence.

  2020/2021 2019/2020
For standard rate taxpayers(1) 10% 10%
For trustees and higher/additional rate taxpayers(1) 20% 20%
Annual exempt amount - individuals £12,300 £12,000
Annual exempt amount - trusts £6,150 £6,000
Entrepreneurs' relief lifetime limit £1,000,000 £10,000,000
Entrepreneurs' rate 10% 10%

(1). These rates do not apply to transactions involving residential property (the sale of second homes) or carried interest (the share of profits or gains that is paid to asset managers). CGT rates for these transactions remain at 18% (standard rate taxpayers) and 28% (higher rate taxpayers).

If you have used your CGT allowance, don't forget your Individual Savings Account (ISA) allowance. Both a 'Cash ISA' and a 'Stocks and Shares ISA' can shelter capital gains on investments, for example unit trust holdings, worth up to £20,000 per year.

From 6th April 2008 Taper Relief was removed and a new relief called 'Entrepreneurs' relief' was introduced to reduce the Capital Gains Liabilities on the disposal of certain business assets.

CGT is a tax on capital 'gains'. If when you sell or give away an asset it has increased in value, you may be taxed on the 'gain' (profit). This doesn't apply when you sell personal belongings worth £6,000 or less or, in most cases, your main home.

When do I have to pay CGT?

You may have to pay CGT if, for example, you:

  • sell, give away, exchange or otherwise dispose of (cease to own) an asset or part of an asset
  • receive money from an asset - for example compensation for a damaged asset

You don't have to pay CGT on:

  • your car
  • your main home - provided certain conditions are met
  • ISAs
  • UK Government gilts (bonds)
  • personal belongings individually worth £6,000 or less when you sell them
  • betting, lottery or pools winnings
  • money which forms part of your income for income tax purposes

Important Considerations:

  • if you are married or in a civil partnership and living together you can transfer assets to your husband, wife or civil partner without having to pay CGT
  • you may not give assets to your children or others or sell assets to them cheaply without having to consider CGT
  • if you make a loss you may be able to make a claim for that loss and deduct it from other gains, but only if the asset normally attracts CGT
  • if someone dies and leaves their belongings to their beneficiaries, there is no CGT to pay at that time - however if an asset is later disposed of by a beneficiary, any CGT they may have to pay will be based on the difference between the market value at the time of death and the value at the time of disposal

For further information about the 2020 Budget changes please click here.

GENERAL ENQUIRY FORM

Marketing Information

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From time to time, we would like to contact you with details about our services, products, business updates and events. If you consent to us contacting you for this purpose please tick to say how you would like us to contact you:

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Yes please, I'd like to hear about offers and services.
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Please tick this box to confirm you have read and understood our privacy policy.

TAX TREATMENT VARIES ACCORDING TO INDIVIDUAL CIRCUMSTANCES AND IS SUBJECT TO CHANGE.

THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE ADVICE ON ESTATE PLANNING AND TAX PLANNING.

Capital Gains Tax Allowances, Liabilities & Reliefs

In the tax year 2020/2021, an individual's CGT allowance is £12,300 (2019/20 - £12,000).

This means you do not have to pay tax on gains from buying and selling shares or other investments during the tax year up to that amount. You do not normally have to pay tax on any gain you make when you sell your main residence.

  2020/2021 2019/2020
For standard rate taxpayers(1) 10% 10%
For trustees and higher/additional rate taxpayers(1) 20% 20%
Annual exempt amount - individuals £12,300 £12,000
Annual exempt amount - trusts £6,150 £6,000
Entrepreneurs' relief lifetime limit £1,000,000 £10,000,000
Entrepreneurs' rate 10% 10%

(1). These rates do not apply to transactions involving residential property (the sale of second homes) or carried interest (the share of profits or gains that is paid to asset managers). CGT rates for these transactions remain at 18% (standard rate taxpayers) and 28% (higher rate taxpayers).

If you have used your CGT allowance, don't forget your Individual Savings Account (ISA) allowance. Both a 'Cash ISA' and a 'Stocks and Shares ISA' can shelter capital gains on investments, for example unit trust holdings, worth up to £20,000 per year.

From 6th April 2008 Taper Relief was removed and a new relief called 'Entrepreneurs' relief' was introduced to reduce the Capital Gains Liabilities on the disposal of certain business assets.

CGT is a tax on capital 'gains'. If when you sell or give away an asset it has increased in value, you may be taxed on the 'gain' (profit). This doesn't apply when you sell personal belongings worth £6,000 or less or, in most cases, your main home.

When do I have to pay CGT?

You may have to pay CGT if, for example, you:

  • sell, give away, exchange or otherwise dispose of (cease to own) an asset or part of an asset
  • receive money from an asset - for example compensation for a damaged asset

You don't have to pay CGT on:

  • your car
  • your main home - provided certain conditions are met
  • ISAs
  • UK Government gilts (bonds)
  • personal belongings individually worth £6,000 or less when you sell them
  • betting, lottery or pools winnings
  • money which forms part of your income for income tax purposes

Important Considerations:

  • if you are married or in a civil partnership and living together you can transfer assets to your husband, wife or civil partner without having to pay CGT
  • you may not give assets to your children or others or sell assets to them cheaply without having to consider CGT
  • if you make a loss you may be able to make a claim for that loss and deduct it from other gains, but only if the asset normally attracts CGT
  • if someone dies and leaves their belongings to their beneficiaries, there is no CGT to pay at that time - however if an asset is later disposed of by a beneficiary, any CGT they may have to pay will be based on the difference between the market value at the time of death and the value at the time of disposal

For further information about the 2020 Budget changes please click here.

GENERAL ENQUIRY FORM

Marketing Information

Submit your Information

From time to time, we would like to contact you with details about our services, products, business updates and events. If you consent to us contacting you for this purpose please tick to say how you would like us to contact you:

Email
Telephone
Post
Yes please, I'd like to hear about offers and services.
No thanks, I don't want to hear about offers and services.
Please tick this box to confirm you have read and understood our privacy policy.

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