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What are the Capital Gains Tax (CGT) rates?

The following tax facts should be viewed as an indication of the rates and allowances available and relate to the current tax year (2022/2023) unless stated otherwise. Tax law is notoriously complex and we cannot replicate every rule, nuance or exemption here. Therefore you should not make, or refrain from making, any decisions based on this information alone. If you are in any doubt as to the suitable course of action we recommend you seek tax advice. Remember tax rules can change and depend on your personal circumstances.

CGT is charged on any profits (the 'gains') you make when you sell (or transfer) shares and unit trusts or other assets such as a second home. If the total of any gains realised in the year, minus any losses, exceeds your annual allowance the excess is liable to CGT.

CGT has a different tax rate depending upon whether it applies to business assets or non-business assets.

The rate of CGT paid by a Scottish taxpayer depends on the rest of UK tax bands and not the Scottish tax bands.

Annual capital gains tax allowance: £12,300 2021/22

2021/22 Capital gains tax rates (non-business assets)

Capital gains Tax rate
Gains which when added to taxable income fall in the UK basic rate tax band 10%
Gains which when added to taxable income fall in the UK higher or UK additional rate tax band 20%

Capital gains on residential property which is not a main residence will be taxed at 18% and 28% instead of 10% and 20%.

Entrepreneurs' Relief (Business assets) 10%

Business assets are generally a share (or interest) in the company or firm you work for. Entrepreneurs' Relief is subject to meeting certain criteria.

Please visit the HMRC website for more information

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