Capital gains tax

2020/21 2019/20
Individual basic-rate income tax band 10% 10%
Individual higher-rate and additional-rate income tax bands 20% 20%
Gains on residential property not eligible for principal private residence (PPR) relief and carried interest
        Individual basic-rate income tax band 18% 18%
        Individual higher-rate and additional-rate income tax bands 28% 28%
Entrepreneurs' relief - effective rate 10% 10%
Entrepreneurs' relief to a limit of (from 11 March 2020) £1m £10m
Annual exemption
        Individuals and personal representitives £12,300 £12,000
        Settlement(s) (spread over total number) £6,150 £6,000
Main rate for trustees and personal representatives 20% 20%
Rate for trustees and personal representatives (for gains on residential property not eligible for PRR) 28% 28%
Proceeds per item or set, for chattels £6,000 £6,000

Notes

  • Transfers between spouses and civil partners living together are exempt.
  • Entrepreneurs' relief of 100% is available in respect of gains made on the disposal of all or part of a business, or gains made on disposals of assets following the cessation of a business or gains by certain individuals who were involved in running the business, providing certain conditions are met.
  • Non-UK residents are now subject to capital gains tax on the sale of UK property.

Other exemptions

SEED enterprise investment scheme: 50% gains exempt from capital gains tax, subject to conditions. 

Venture capital trust: all gains made from VCTs are 100% exempt from capital gains tax.

Social investment tax relief: 100% exempt, subject to conditions.

Principal private residence: 100% exempt, subject to conditions.

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