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Discover how to optimise your tax savings with our Capital Gains Tax Calculator. Perfect for UK residents, this tool helps you swiftly calculate potential taxes on the sale of assets or property. Whether you’re a first-time seller or a seasoned investor, our calculator provides clear, instant estimations to guide your financial decisions effectively. Simplify your tax planning and enhance your understanding of what you owe with each transaction.
Your Situation
Do you have any other income sources e.g. annual salary, rental income etc.
Tax & Profit
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Your profit from
–£0£3,000 tax-free CGT allowanceThe current Capital Gains tax-free allowance is: £3,000. £1,500 for trusts.
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Capital Gains Tax to pay£0
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Profit after tax£0
What is Capital Gains Tax?
Capital Gains Tax (CGT) is a tax on the profit when you sell (or ‘dispose of’) something (an ‘asset’) that has increased in value. It’s the gain you make that’s taxed, not the amount of money you receive. Examples of assets include shares, property, and personal possessions worth £6,000 or more, excluding your car. CGT is applicable in the UK and has different rates for basic and higher-rate taxpayers, making understanding this tax crucial for effective financial planning. Whether you are selling your second home, business shares, or a valuable piece of art, it’s important to know how your potential gains could be taxed.
Navigating UK Capital Gains Tax Rates for 2024/25
If you’re looking to sell assets this year—whether it’s shares, a piece of art, or a property—you’ll need to understand Capital Gains Tax (CGT). CGT is charged on the profit you make from selling certain types of assets, and knowing the rates and exemptions can significantly affect your financial planning.
Current CGT Rates
Here’s what you need to know about the CGT rates for the 2024/25 tax year:
- 10% rate applies to your entire capital gain if your total annual income is below £50,270, but this rate jumps to 18% for residential properties.
- 20% rate is charged if your income is above the £50,270 threshold, increasing to 24% for residential properties.
Remember, each individual has a £3,000 CGT allowance this year—a sharp drop from last year’s £6,000 —meaning the first £3,000 of your capital gains is tax-free.
Exemptions from CGT
Usually, selling your primary residence won’t attract CGT, which is a relief for most homeowners.
CGT Rates Depending on Asset Type
| Type of Asset | Basic Rate | Higher Rate |
|---|---|---|
| Shares | 10% | 20% |
| Bitcoin/Cryptocurrency | 10% | 20% |
| Other Assets | 10% | 20% |
| Residential Property | 18% | 24% |
Annual Exempt Amount
For this tax year, both individuals and trusts have a CGT free allowance of £3,000.
Dealing with Capital Losses
If selling an asset has led to a financial loss, you might be able to offset this against other gains. However, there are specific rules about what losses are allowable:
- You can’t claim for losses when selling or gifting assets to your spouse, family members, or a business partner.
- Selling items classified as ‘wasting assets’—like cars or certain types of machinery—which are expected to last less than 50 years, won’t qualify for relief.
Exclusions and Relief Opportunities
Not all assets are subject to CGT—wasting assets, including cars and certain machinery, are generally exempt due to their diminishing value over time. Also, if you’re thinking of selling your business, you might be eligible for Business Asset Disposal Relief, which reduces the CGT rate to 10%. To qualify, you need to have been a sole trader or a business partner for at least two years.
Understanding these aspects of Capital Gains Tax can help you minimize your tax obligations and make informed decisions about your assets. For bespoke advice and to ensure you’re making the most of your tax allowances, consider reaching out to a professional accountant. They can offer tailored guidance based on your personal financial situation.
