From 30 October 2024, the lower rate of Capital Gains Tax (CGT) paid by basic rate taxpayers is increased to 18% and the higher rate of CGT is increased to 24%. These rates now align with the rates of CGT that apply to disposals of residential property.
The CGT rate for disposals qualifying for Business Asset Disposal Relief (BADR) and Investors’ Relief (IR) will increase to 14% from 6 April 2025, and to 18% from 6 April 2026.
From 6 April 2025, the rate of CGT on carried interest increases to 32% and from 6 April 2026 the regime will be incorporated fully into the income tax framework.
Where CGT is payable on the sale of a residential property, reporting continues to be required within 60 days of completion.
