2024 Capital Gains Tax

It had been mooted that capital gains tax (CGT) rates would be aligned with income tax rates, thankfully, this has not occurred.

Instead of increasing the residential property tax rates, the Chancellor opted instead to increase the main rates of CGT – the lower rate will rise from 10% to 18% and the higher rate will rise from 20% to 24%. The changes take effect from 30 October 2024. There are no changes to the residential tax rates, which remain at 18% and 24%. The rates continue at this level for 2025-26.

The increases in the main rates of CGT means that this tax is charged at the same rates (18% or 24%) regardless of nature of the assets disposed.

PLANNING NOTE: Landlords will be relieved that the higher residential rate will remain at 24% until at least 5 April 2026. However, where a landlord is planning to sell, it may be prudent to do so while the 24% rate remains available, as beyond April 2026 nothing is guaranteed.

If you are considering disposals of assets affected by CGT please call so we can consider your options.