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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