CAPITAL GAINS TAX - BADR (Entrepreneurs Relief)

2024/25

2023/24

Notes

Maximum BADR available during lifetime

£1 million

£1 million

BADR is reduced from £10m to £1m for disposals made on or after 11 March 2020.

Investors Relief of up to £10m is available on a disposal of shares in a trading company not listed on the Stock Exchange. It applies to shares issued after 17.3.2016 and disposed of on or after 6.4.2019. The Shares must be owned for 3 years before disposal and is not usually available if you are (or someone connected with you is) an employee of the company.

CAPITAL GAINS ANNUAL EXEMPTION

2024/25

2023/24

Notes

Annual exempt amount for individuals and personal representatives and trusts for disabled persons

£3,000

£6,000

Personal representatives are entitled to the annual exempt amount for the tax year in which an individual dies and the following two tax years.

Annual exempt amount for other trusts

£1,500

£3,000

CAPITAL GAINS TAX RATES

2024/25

2023/24

Notes

Basic rate taxpayers

10%

10%

The 10% and 20% lower capital gains tax rates do not apply to chargeable gains arising from the sale of residential properties. Residential property gains are charged at 18% or 24% for 2024/25.

Higher rate taxpayers

20%

20%

Residential property gains - basic rate taxpayers

18%

18%

Residential property gains - higher rate taxpayers

24%

28%

Rates for trustees and personal representatives

20%/24%

20%/28%

As for individuals

Rates for Business Asset Disposal Relief (BADR) (previously called Entrepreneurs Relief (ER) & Investors Relief

10%

10%

BADR applies to individuals or trustees who dispose of a material interest in a trading company, either by selling shares or trade assets in a company.

CAPITAL LOSSES - INDIVIDUALS & TRUSTEES

Relief against

Notes

Current year capital losses - excluding below

N.B. If you make a capital loss on the sale/gift of an asset to a connected person, relief is against capital gains made to the same connected person only.

Current year capital gains

All current year losses must be offset against current year gains - this could mean that the annual exemption is lost. Any excess losses not relieved are carried forward.

Capital losses made on shares originally subscribed for in unquoted trading companies or EIS

Total income of the same tax year and/or the previous tax year in either order

An occasion when a capital loss can be set off to reduce income tax.

Capital losses brought forward

Future capital gains - but only to the extent that they exceed the annual exemption for the year

Only claim enough capital losses brought forward so that the capital gains to be taxed is exactly the same as annual exempt amount.

CAPITAL LOSSES - COMPANIES

Relief against

Notes

Current year capital losses

Current year capital gains or against current year gains in group companies

Any excess losses not relieved are carried forward.

Capital losses brought forward

Future capital gains