Capital gains tax

Standard and higher rates of capital gains tax (CGT) together with the annual exemption. The special rate of CGT and the limit applying for entrepreneurs’ relief purposes.

Call 020 7602 6366 or email info@merchant.london

Capital Gains Tax (CGT) is payable by individuals, trustees and 'personal representatives' (PRs). 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 'Entrepreneurs' Relief' are charged at 10% for the first £1 million.

Individuals 2023/24 2022/23
Exemption £6,000 £12,300
Standard rate 10% 10%
Higher rate 20% 20%

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

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

Trusts 2023/24 2022/23
Exemption £3,000 £6,150
Rate 20% 20%
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Merchant & Co was founded in 1920 by Harold Aubrey Merchant, a former mayor of Ealing. The firm has always been based in West London with offices in the Ealing, Kensington and Harrow areas...

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020 7602 6366

Ealing Address: 2 Craven Road, Ealing W5 2UA
Harrow Address: 9 Bradburys Court Offices, Lyon Road, Harrow HA1 2BY

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Merchant & Co is the practising name of Merchant Mackinlay Simpson Ltd Incorporating Grashoff & Co and Campbell & Samuel Ltd.
Registered in England | Co Number : 08117182 | Reg Office : Merchant & Co, 2 Craven Road, Ealing, LONDON W5 2UA

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