CGT rates increased in the October 2024 Budget — check you have the right figures
Anyone who last looked at CGT before October 2024 will have the wrong rates. The main CGT rates on assets like shares increased at the Autumn Budget. If you are planning a disposal, use current rates from GOV.UK, not anything published before October 2024. HMRC CGT rates on GOV.UK.
On profit only
What CGT is charged on
CGT applies to the gain — the difference between what you paid and what you received. Not the total sale price. Costs of acquisition and improvement can often be deducted.
£3,000
Annual exempt amount (2024/25)
The annual exempt amount for 2024/25. Verify the current figure at GOV.UK — it was £12,300 in 2022/23, cut to £6,000 in 2023/24, then £3,000 in 2024/25. Further changes are possible.
60 days
Reporting deadline for property
If you sell a residential property and CGT is due, you must report and pay within 60 days of completion. This is separate from Self Assessment and is the most commonly missed CGT deadline.
What assets are subject to CGT
CGT applies when you dispose of a chargeable asset at a gain. Common chargeable assets include:
- Shares and funds held outside an ISA or pension
- Second homes, buy-to-let properties, and inherited properties
- Business assets (goodwill, equipment above certain values)
- Personal possessions worth more than £6,000 (verify the current threshold at GOV.UK)
- Cryptocurrency
- Land that is not your main home
Assets that are NOT subject to CGT include:
- Your main home, if Principal Private Residence relief applies in full
- Assets held inside an ISA
- Assets held inside a pension
- UK government gilts (government bonds)
- Personal cars
- Premium Bonds and similar National Savings products
- Assets left to charity
The distinction between personal and investment assets matters. A painting you bought for £5,000 and sold for £50,000 may attract CGT. A car you bought for £30,000 and sold for £5,000 does not. Verify any specific asset type at GOV.UK CGT overview.
The annual exempt amount
Every individual has an annual exempt amount — the total gain they can make in a tax year without paying CGT. If your gains in a tax year are below this amount, no CGT is due.
The annual exempt amount has been cut sharply in recent years. In 2022/23 it was £12,300. It fell to £6,000 in 2023/24 and then to £3,000 in 2024/25. Verify the figure for the current tax year at GOV.UK annual exempt amount.
This reduction has a real effect. Many investors and landlords who were comfortably below the old threshold now have gains that exceed the new one, and need to report accordingly. If you have sold shares, a property, or other assets, check whether your total gain exceeds the current exempt amount.
CGT rates after the October 2024 Budget
CGT rates depend on two things: whether you are a basic rate or higher rate taxpayer, and what type of asset you are disposing of.
The October 2024 Budget increased the main CGT rates for most assets. Verify the current rates at GOV.UK CGT rates before relying on any figures. The residential property rate and the rate for other assets are now aligned for many taxpayers — but the rules around specific asset types (business asset disposal relief, for example) have their own rates. Verify all of these at GOV.UK.
For basic rate taxpayers, the amount of gain that falls within your remaining basic rate band is taxed at a lower rate. Gains above that threshold are taxed at the higher rate. Your taxable income affects how much of the lower rate you can access in any given year.
Your main home: Principal Private Residence relief
If you have lived in a property as your only or main home throughout your period of ownership, you pay no CGT when you sell it. This is Principal Private Residence (PPR) relief.
For most people selling the home they have always lived in, PPR applies in full and there is nothing to report to HMRC. But PPR becomes complicated in certain situations:
- You have rented out part or all of the property during your ownership
- You have lived abroad for part of the period of ownership
- You have more than one property and have not nominated your main home
- The garden or grounds are larger than the permitted area
- Part of the property has been used exclusively for business
If any of these apply, part of your gain may be taxable. Take advice before assuming full PPR applies.
If you have always lived there as your main home, PPR almost certainly covers you in full
The complications around PPR arise in specific circumstances — letting, overseas periods, large grounds. For the majority of people selling the house they have always lived in, PPR relief applies in full and no CGT is due regardless of the gain. Do not let the complexity distract you if your situation is straightforward.
How to report and pay CGT
The reporting route depends on what you sold.
Residential property: If CGT is due on the sale of a residential property in the UK, you must report and pay within 60 days of the completion date using HMRC's online residential property service. This is entirely separate from Self Assessment. Many sellers assume they can just include it in their annual return — they cannot. The 60-day deadline applies even if you are filing a Self Assessment return for the same year.
Other assets (shares, business assets, etc.): Gains on non-property assets are reported through Self Assessment in your annual tax return. The deadline is 31 January following the end of the tax year. See the Self Assessment guide for how the return process works.
If your gains are below the annual exempt amount, you generally do not need to report unless HMRC asks you to, though there are specific situations where you must report even with no tax to pay. Verify at GOV.UK CGT reporting.
The 60-day residential property deadline is the most commonly missed CGT obligation
Selling a second home, buy-to-let, or inherited residential property triggers a 60-day reporting and payment clock from the day of completion. This is not the January 31 Self Assessment deadline — it is a separate, earlier obligation. Many sellers only discover this after the deadline has passed, which means interest and late payment penalties. If you are selling a property where CGT may be due, make sure this is on your solicitor's radar before exchange.
Spouses and civil partners
Transfers of assets between spouses and civil partners are treated as taking place at no gain and no loss — meaning no CGT arises on the transfer itself. This can be used to ensure both partners' annual exempt amounts are used before a disposal, or to transfer assets to a partner in a lower tax band. Verify the current rules and any planning restrictions at GOV.UK CGT couples.
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Common questions
Do I pay CGT when I sell my home?▾
Usually not. If you have lived in the property as your main and only home throughout your ownership, Principal Private Residence relief applies and no CGT is due regardless of the size of the gain. Complications arise if you have rented it out, lived abroad for periods, or have large grounds. If your situation is straightforward, PPR almost certainly covers you in full.
What is the CGT annual exempt amount?▾
The annual exempt amount is the total gain you can make in a tax year without paying CGT. It has been cut significantly: from £12,300 in 2022/23 to £6,000 in 2023/24, then to £3,000 in 2024/25. Verify the current figure at GOV.UK — further changes are possible.
How do CGT rates differ for higher rate taxpayers?▾
Higher rate taxpayers pay CGT at a higher rate than basic rate taxpayers. The October 2024 Budget increased the main rates for both groups for most asset types. Verify the current rates at GOV.UK before making any disposal decisions based on an expected rate. The distinction between residential property and other assets also affects which rate applies.
How do I report capital gains on a second property?▾
You must report and pay CGT on residential property gains within 60 days of completion using HMRC's online service. This is separate from your annual Self Assessment return. Missing this deadline triggers interest and penalties. Your solicitor can guide you through the process, or you can report directly through your HMRC online account.
Do I pay CGT on shares inside an ISA?▾
No. Gains on assets held inside an ISA are completely exempt from CGT, regardless of the size of the gain. This is one of the main reasons ISAs are a valuable long-term investment wrapper. Assets held outside an ISA in a general investment account are fully subject to CGT.
What counts as a chargeable asset for CGT?▾
Chargeable assets include shares held outside an ISA, second homes and buy-to-let properties, business assets, personal possessions worth more than the chattels threshold (verify at GOV.UK), and cryptocurrency. Your main home (with PPR relief), ISA and pension holdings, personal cars, and Premium Bonds are not chargeable assets for CGT purposes.