vap
chartered certified accountants
CLIENTS page
CLIENTS page
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CAPITAL GAINS TAX - BADR (Entrepreneurs Relief) |
2024/25 |
2023/24 |
Notes |
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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. |
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Investors Relief of up to £10m (£1m from 30.10.2024) is available on a disposal of shares in a trading company not listed on the Stock Exchange. Applies to shares issued after 17.3.16 and disposed of on or after 6.4.19. 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. | |||
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CAPITAL GAINS ANNUAL EXEMPTION |
2024/25 |
2023/24 |
Notes |
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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. |
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Annual exempt amount for other trusts |
£1,500 |
£3,000 |
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CAPITAL GAINS TAX RATES |
2024/25 |
2023/24 |
Notes |
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Basic rate taxpayers - |
10%/18% |
10% |
From 30.10.2024 higher rates of 18%/24% apply. Residential property gains are charged at 18% or 24% for 2024/25. |
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Higher rate taxpayers |
20%/24% |
20% | |
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Residential property gains - basic rate taxpayers |
18% |
18% | |
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Residential property gains - higher rate taxpayers |
24% |
28% | |
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Rates for trustees and personal representatives |
20%/24% |
20%/28% |
As for individuals |
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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. Rises to 14% from 6.4.25. |
Capital Gains Tax
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CAPITAL LOSSES - INDIVIDUALS & TRUSTEES |
Relief against |
Notes | |
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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. | |
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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. | |
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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. | |
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CAPITAL LOSSES - COMPANIES |
Relief against |
Notes | |
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Current year capital losses |
Current year capital gains or against current year gains in group companies |
Any excess losses not relieved are carried forward. | |
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Capital losses brought forward |
Future capital gains |
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