Capital Gains Tax is payable by individuals, trustees and personal representatives. Companies pay corporation tax on their capital gains.
There are annual tax free allowances for individuals, companies do not have an annual exempt amount.
For individuals, net gains are added to the total taxable income to determine the appropriate rate of tax. The standard rate applies only to the net gains which, when added to total taxable income do not exceed the basic rate band.
Gains which qualify to Entrepreneurs Relief or Investors Relief are changed at 10% for the first £10m of qualifying gains.
|Standard Rate||10% *||10% *|
|Higher Rate *||20% *||20% *|
* for higher and additional rate tax payers
* Higher rates of 18% and 28% may apply to the disposal of certain residential property