Capital Gains Tax Annual Exemption 2024/25. Capital gains tax rates and allowances. The government expect that this measure will yield an additional £420m of tax revenue in 2024/25 rising to £855m in 2025/26.
As part of the autumn statement in 2022, the chancellor announced that the annual exemption amount (aea) amount for capital gains tax was to be reduced over both. For the 2024 to 2025 tax year the allowance is £3,000, which leaves £9,600 to pay tax on.
Individuals, Trustees Of Settlements (Trustees) And Personal Representatives Who Realise Gains Chargeable To Capital Gains Tax (Cgt).
The reduction in the cgt annual exempt amount means that a higher rate taxpayer who would have utilised the entire £12,300 annual exemption will pay up to £1,764 more.
When Do I Pay Cgt?
By reducing the annual exempt amount, the governments estimates that for the year 2023 to 2024 around 500,000 individuals and trusts per year could be affected,.
The Annual Exemption Amount For Capital Gains Tax Will Change, From £12,300 To £6,000 From April 2023 Then £3,000 From April 2024.
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The Capital Gains Tax (Cgt) Annual Exemption Will Drop To £3,000 In 2024/25, Down From £6,000 In 2023/24.
Tax year end guide to utilising.
The Reduction In The Cgt Annual Exempt Amount Means That A Higher Rate Taxpayer Who Would Have Utilised The Entire £12,300 Annual Exemption Will Pay Up To £1,764 More.
For the 2024 to 2025 tax year the allowance is £3,000, which leaves £9,600 to pay tax on.