Impact assessment

Capital Gains Tax rate change: Screening Equality Impact Assessment

Published 10 April 2025

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This publication is available at https://www.gov.uk/government/publications/capital-gains-tax-rate-change/capital-gains-tax-rate-change-screening-equality-impact-assessment

Project objectives

Capital Gains Tax (CGT) is charged at the following rates on gains (up to April 2024):

  • for basic rate taxpayers the rates are:

  • 10% on gains made from the disposal of assets other than residential property
  • 18% on residential property gains and carried interest
  • for higher rate taxpayers, or where the taxable gain is such that it is greater than the remainder of the unused basic rate band, the rates are:
    • 20% on gains made from the disposal of assets other than residential property
    • 28% on residential property gains and carried interest
  • for trustees and personal representatives, the rates are:
    • 28% on residential property and carried interest gains
    • 20% on gains on other assets

CGT is also charged at 10% if the gain qualifies for Business Asset Disposal Relief or Investors Relief.

Gains are calculated by deducting the cost of the asset when it was acquired from the amount paid for it so that only the increase in value or ‘profit’ is taxed. There are special rules for gifts.  

CGT is paid using one of the following methods:

  • for residential property gains by using the CGT on UK property microservice (‘microservice’). The CGT is due within 60 days of the sale completing.
  • the ‘real time’ CGT service (this service cannot be used for UK property disposals)
  • annually in a Self Assessment tax return   

The Spring Budget measure proposed:

Cutting the 28% rate of CGT that applies to residential property gains to 24%. This is expected to incentivise earlier disposals of second homes, buy-to-let property and other residential property where accrued gains do not fully benefit from Private Residential Relief (PRR). This will generate more transactions in the property market, benefitting those looking to move home or get onto the property ladder. This change will take effect from 6 April 2024.

The 28% rate of CGT that applies to carried interest will remain at 28%. The project will introduce these changes. This will necessitate separating carried interest from property disposals on the Self Assessment return as the rates will no longer be the same.

Customer groups affected

Individuals, trustees and persona representatives

What customers will need to do

As this is a measure relating to a CGT rate change the customer groups are already known as they are well established. There will be no change to customer processes, and affected customers will not have to do anything different.

Customers can access the service via GOV.UK portal and Business Tax Account, this process is designed to be as straightforward and seamless as possible. HMRC offers an extra support service for those customers who cannot, for whatever reason, interact with HMRC digitally or who need additional support and reassurance.

When customers need to do this

The customer impact began when the Spring Budget 2024 CGT rate change announcement was made, to take effect from 6 April 2024. The Self Assessment change will be in place for the 2024 to 2025 tax year.

Phase 1 – Immediate calculator changes 6 April 2024

Phase 2 – Self Assessment products updated: Property Disposals updated and separated from carried interest on 6 April 2025

Assessing the impact

We assessed the impact on those in protected characteristic groups in line with the Equality Act and Public Sector Equality Duty and section 75 of the Northern Ireland Act:

  • race
  • disability
  • sex
  • gender reassignment
  • sexual orientation
  • age
  • religion or belief
  • pregnancy and maternity
  • marriage and civil partnership
  • people with dependants and those without (carers)
  • political opinion (in Northern Ireland only)
  • people who use different languages (including Welsh language and British Sign Language)

There is no evidence to suggest any specific impacts on those customers within any of the protected characteristic groups (listed above). Extra support will be provided as required.

Opportunities to promote equalities

We have considered opportunities to promote equalities and good relations between people in each of the protected characteristic groups and those outside of that group.

No additional opportunities have been identified.

A full Equality Impact Assessment is not recommended.

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