What are the Capital Gains Tax Rates 2023 – 2024 and 2022 – 2023

Capital Gains is the tax you pay on the gain you make on selling an asset. 

In the UK there is an allowance per person for the gain you can make before you pay tax. It is essential to understand the rates for this year and next year so that you can make the most tax-efficient decisions possible.

Capital gains tax rates for 2023-24 and 2022-23
If you make a gain after selling a property, you’ll pay 18% capital gains tax (CGT) as a basic-rate taxpayer, or 28% if you pay a higher rate of tax.

Gains from selling other assets are charged at 10% for basic-rate taxpayers, and 20% for higher-rate taxpayers.

You’ll only need to pay these rates on the gains that exceed your capital gains allowance.

CGT allowance for 2023-24 and 2022-23
The capital gains tax allowance in 2023-24 is £6,000, less than half what it was in 2022-23.

This is the amount of profit you can make from an asset this tax year before any tax is payable.

If your assets are owned jointly with another person, you can use both of your allowances, which can effectively double the amount you can make before CGT is due.

If you are married or in a civil partnership, you are free to transfer assets to each other without any CGT being charged.

2022 / 2023 Allowances

Individual – £12,300
Couple (married or civil partnerships only) – £24,600

2023 / 2024 Allowances 

Individual £6,000
Couple (married or civil partnerships only) £12,000

20024 / 2025  (Announcements in the budget 2022)
Individual – £3000
Couple (married or civil partnerships only) – £6000  

However, if you choose to transfer any of your assets to your partner, bear in mind that if you later sell the asset, you’ll be charged based on the gain made during the period you owned it as a couple, rather than since the asset was passed to your partner.

If you don’t make full use of your CGT allowance in a given tax year, you aren’t allowed to carry it forward to the next.

HMRC’s standards on whether assets are or aren’t wasting assets can be tricky to understand, so if you’re selling a valuable asset and aren’t sure whether it should be declared for CGT it’s a good idea to take expert advice get in contact with our team for advice and an informal chat.