CG10245 - Capital Gains Tax: rates of tax – from 6 April 2016
There are four categories of person chargeable to Capital Gains Tax:
- individuals
- personal representatives
- trustees
- companies if they are not within the charge to Corporation Tax.
Companies
A company’s chargeable gains less allowable losses are normally included in its total profits for an accounting period and charged to Corporation Tax, see CG10247 and CG40200.
Individuals, personal representatives and trustees
2016 -17 Onwards
TCGA92/S1H to S1J
Where chargeable gains accrue to an individual those net gains accruing in a year of assessment, after taking account of losses and the annual exempt amount (CG18000c), are charged to Capital Gains Tax at:
- 10 per cent if the gains qualify for Business Asset Disposal Relief (CG63950+) or Investors Relief (CG63500+).
- 18 per cent or 28 per cent if they are in respect of disposals of interests in residential property (see CG73550) i.e. residential property gains or gains accruing under section 103KA(2) or (3) i.e. carried interest
- other gains are charged at 10 per cent or at 20 per cent
For the gains at 2) and 3) above to the extent that the basic rate limit is not utilised by the individual’s income and by gains qualifying for Business Asset Disposal Relief and Investors Relief, the gain (or part) would be charged at the lower rate
Unused Income Tax reliefs and allowances cannot be set against the net gains.
Gains accruing to a person in a tax year may be chargeable to Capital Gains Tax at different rates. Thus the tax effect of losses and the annual exempt amount set off against those gains can vary. CG18000 and CG21500+ explain that, subject to any rules which limit the gains from which losses may be deducted, losses and the annual exempt amount may be set against gains in the way that is most beneficial to the individual.
Different rates of tax apply to the different categories of person. More detail is given in the appropriate section of the guidance as follows: