Capital Gains Tax: what you pay it on, rates and allowances
Capital Gains Tax rates
You pay a different rate of tax on gains from residential property than you do on other assets.
You do not usually pay tax when you sell your home.
If you pay higher rate Income Tax
If you鈥檙e a higher or additional rate taxpayer, the amount you pay will depend on the date and type of your gain.
Gains from 30 October 2024 onwards聽
You鈥檒l pay:聽
- 24% on your gains from residential property聽
- 28% on your gains from鈥�鈥榗arried interest鈥�鈥痠f you manage an investment fund聽
- 24% on your gains from other chargeable assets聽聽
Gains between 6 April 2024 to 29 October 2024
You鈥檒l pay:
- 24% on your gains from residential property
- 28% on your gains from 鈥榗arried interest鈥� if you manage an investment fund
- 20% on your gains from other chargeable assets
You can see the rates and allowance for previous years.
If you pay basic rate Income Tax
If you鈥檙e a basic rate taxpayer, the rate you pay depends on the size of your gain, your taxable income and whether your gain is from residential property or other assets.
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Work out how much taxable income you have - this is your income minus your Personal Allowance and any other Income Tax reliefs you鈥檙e entitled to.
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Work out your total taxable gains.
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Deduct your tax-free allowance from your total taxable gains.
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Add this amount to your taxable income.
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If this amount is within the basic rate Income Tax band, you鈥檒l pay 18% on your gains made from 30 October 2024. For gains made between 6 April 2024 to 29 October 2024, you鈥檒l pay 10% on your gains (or 18% on residential property and carried interest).
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For any amount above the basic Income Tax band, you鈥檒l pay 24% on gains made from 30 October 2024 (or 28% on carried interest). For gains made between 6 April 2024 and 29 October 2024, you鈥檒l pay 20% (or 24% on residential property and 28% on carried interest).
Example 1
You make a gain on or after 30 October 2024. Your taxable income (your income minus your Personal Allowance and any Income Tax reliefs) is 拢20,000 and your taxable gains are 拢12,600.聽聽
First, deduct the Capital Gains tax-free allowance from your taxable gain. For the 2024 to 2025 tax year the allowance is 拢3,000, which leaves 拢9,600 to pay tax on.鈥�
Add this to your taxable income. Because the combined amount of 拢29,600 is less than 拢37,700 (the basic rate band for the 2024 to 2025 tax year), you pay Capital Gains Tax at 18%.鈥�
This means you鈥檒l pay 拢1,728 in Capital Gains Tax.
Example 2
You make a gain between 6 April 2024 and 29 October 2024. Your taxable income (your income minus your Personal Allowance and any Income Tax reliefs) is 拢20,000 and your taxable gains are 拢12,600. Your gains are not from residential property.聽
First, deduct the Capital Gains tax-free allowance from your taxable gain. For the 2024 to 2025 tax year the allowance is 拢3,000, which leaves 拢9,600 to pay tax on.聽
Add this to your taxable income. Because the combined amount of 拢29,600 is less than 拢37,700 (the basic rate band for the 2024 to 2025 tax year), you pay Capital Gains Tax at 10%.聽
This means you鈥檒l pay 拢960 in Capital Gains Tax.
If you have gains from both residential property and other assets
You can use your tax-free allowance against the gains that would be charged at the highest rates (for example where you would pay 24% or 28% tax).聽
You can see the rates and allowance for previous years.
If you鈥檙e a trustee, personal representative or business
Trustees or personal representatives of someone who鈥檚 died pay:
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24% on residential property聽
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24% on other chargeable assets (or 20% on gains between 6 April 2024 and 29 October 2024)
Personal representatives of someone who鈥檚 died pay 28% on carried interest.
You鈥檒l pay 10% if you鈥檙e a sole trader or partnership and your gains qualify for Business Asset Disposal Relief.
You can see the rates and allowance for previous years.