Chartered Accountants and Business Advisers

Capital Gains Tax

On chargeable gains	2024/25	2023/24
On the disposal of residential property interests (where not exempt):
Up to income tax basic rate limit	18%	18%
Over income tax basic rate limit	24%	28%
Trust rate	24%	28%
Carried Interest:
Up to income tax basic rate limit	18%	18%
Over income tax basic rate limit	28%	28%
Trust rate	28%	28%
On other chargeable gains:
Up to income tax basic rate limit	10%	10%
Over income tax basic rate limit	20%	20%
Trust rate	20%	20%
Annual exemption for individuals	£3,000	£6,000
Annual exemption for most trustees	£1,500	£3,000
Business asset disposal relief		10%

Business asset disposal relief

Business asset disposal relief can be claimed on more than one occasion up to a "lifetime" limit of £1 million of qualifying capital gains.

Transfer of assets between spouses and civil partners

Transfers of assets between spouses and civil partners are generally not chargeable disposals for capital gains tax purposes.

Inheritance Tax

	2024/25	2023/24
Nil rate band	£325,000	£325,000
Maximum combined nil rate band:
Married couples and civil partners	*£650,000	*£650,000
Rates of Inheritance Tax:
Chargeable lifetime transfers	20%	20%
Transfers on, or within 7 years of, death above the nil rate band	**40%	**40%

An additional residence nil rate band applies when a home transfers on death to direct descendants of the deceased after 5 April 2017. The residence nil rate band for 2023/24 and 2024/25 is £175,000.

*any nil rate band not used on a person's death can be transferred to their surviving spouse or civil partner

**subject to a tapered reduction for transfers between 3 and 7 years before death