Capital Gains Tax (CGT) – Tax Free Gains 2024-25  

There are certain assets that you can sell without paying CGT. They include: 
 The sale of any chargeable asset, like shares or a second home, if the overall gains in the current tax year do not

  • exceed £3,000 (2023-24 – £6,000).
  • Any gains on assets you gift to your spouse, as long as you were not separated and didn’t live together during the tax year.
  • Qualifying gifts to a charity.
  • Gains from ISAs or PEPs.
  • Gains on disposal of certain UK government gilts and Premium Bonds.
  • Betting, lottery or pools winnings.
  • In most instances, the disposal of your main home.
  • The disposal of your own car unless you have used it for business purposes.
  • Any personal possession (jewellery, paintings, antiques and other collectibles) unless sold for more than £6,000.

CGT rates for 2024-25 are: 

Gains on disposals up to 30 October 2024 

If you pay income tax at higher rates on your income plus capital gains (40% or above) you will pay CGT at:

  • 24% on gains from sale of chargeable residential property, This reduced rate from 6 April 2024 applies to individuals, trustees and personal representatives.
  • 20% on gains from sale of other property.

If you pay income tax at basic rates on income and gains (20%) you will pay CGT at: 
 

  • 18% on gains from sale of chargeable residential property, and
  • 10% on gains from sale of other property.

Gains on disposals after 30 October 2024 

The Autumn Budget presented 30 October 2024, changed the rates of CGT payable on assets other than residential property. 

If you pay income tax at higher rates on your income plus capital gains (40% higher rate income tax, or above) you will pay CGT at:

  • 24% on gains from sale of other property.

If you pay income tax at basic rates on income and gains (20% income tax) you will pay CGT at:

  • 18% on gains from sale of other property.

To qualify for the lower rates your taxable income plus the chargeable gain must be within the basic rate income tax band. If the gain is part under and part over this limit, you will pay CGT one part at the lower and part at the higher rates.

Work though the check list that follows and if any apply to your circumstances call us at DMO to discuss your options.