CAPITAL GAINS TAX

Capital Gains Tax (CGT) is payable by individuals, trustees and ‘personal representatives’ Companies pay corporation tax on their capital gains.

There are annual tax-free allowances (the ‘annual exempt amount’) for individuals, trustees and PRs. Companies do not have an annual exempt amount.

For individuals net gains are added to ‘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 for ‘Investors Relief’ are charged at 10% for the first £10m of qualifying gains.

Gains which qualify for ‘Business Asset Disposal Relief’ are charged at 10% for the first £1 million.

Individuals

2021/22

2020/21

Exemption
£12,300
£12,300
Standard rate

10%
10%
Higher rate
20%
20%

The higher rate applies to higher rate and additional rate taxpayers.

Trusts

2021/22

2020/21

Exemption
£6,150
£6,150
Rate

20%
20%

Additionally, higher rates of 18% and 28% may apply to the disposal of certain residential property.

WIM Accountants are here to help businesses with their accounting and taxation needs.

ACCAWe are a member firm of Association of Chartered Certified Accountants

London Office

Office Suite 1, 12b High View
Parade, Woodford Avenue,
Ilford, IG4 5EP
Contact: 02082271700

Nottingham Office

Cattle Market Road, Nottingham, NG2 3GY

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Monday - Friday : 09:30 - 17:30 Saturday and Sunday : Closed

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