We would like to remind our readers that there is still time to use the annual exemption for Capital Gains Tax (CGT). In the current 2019-20 tax year, this amounts to £12,000. This means that there is no CGT to pay on the first £12,000 of gains where you dispose of chargeable assets, such as property or stocks and shares.
If you are a married couple or civil partnership, you should ensure that each of party utilises their full annual exempt amount wherever possible. Any unused part of the annual exempt amount cannot be carried forward and is forfeited if unused in the current tax year.
CGT is usually charged at a simple flat rate of 20%. If you only pay basic rate tax and make a small capital gain, they may be subject to a reduced rate of CGT of 10%. Once the total of taxable income and gains exceed the higher rate threshold, the excess will be subject to 20% CGT. A higher rate of CGT (8% supplement) applies to gains on the disposal of chargeable residential property.
Planning notes
17/07/2025 - More...
New UK transfer pricing rules could mean more reporting and fewer exemptions for mid-sized businesses. The government is
17/07/2025 - More...
Making Tax Digital for Income Tax will become mandatory in phases from April 2026. If you are self-employed or a
17/07/2025 - More...
Need to help a relative or friend with tax? HMRC’s Trusted Helper service makes it quick and easy to support someone
With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!
» Sign up for the Newsletter
» Login