Autumn Budget 2024: Capital Gains Tax — Lower rate increased to 18% and Higher rate increased to 24%

Chancellor Rachel Reeves has announced a change to CGT rates in the Autumn 2024 budget.

Chancellor Rachel Reeves has announced in her Autumn 2024 budget that from 30 October 2024 the lower rate of Capital Gains Tax (CGT) on assets other than residential property will be increased from 10% to 18% and the higher rate of CGT is increased from 20% to 24%.

These assets include things such as shares, business assets, most personal possessions worth £6,000 or more (apart from your car).

The rates of Capital Gains Tax that apply to residential property disposals (18% and 24%) will remain unchanged. If you are a UK tax resident and dispose of a UK residential property, you are required to report and pay any CGT within 60 days of completion.

The rate of CGT that applies to trustees and personal representatives has been increased from 20% to 24% for disposals made on or after 30 October 2024. Reeves said this means the UK will still have the lowest capital gains tax rate of any European G7 economy.

The changes to the above CGT Tax rates mean that it will no longer be necessary to specify separate CGT rates for this purpose.  Additionally, the CGT annual exemption remains unchanged in this budget at £3,000.

Reeves added that she will increase CGT rates on carried interest to increase the 18% and 28% rates of Capital Gains Tax that apply to carried interest, to a single rate of 32%.This measure will apply to carried interest arising to an individual on or after 6 April 2025.

The rate of CGT that applies to Business Asset Disposal Relief (Previously Entrepreneurs Relief) and Investors’ Relief from 10% to 14% for disposals made on or after 6 April 2025. This is going to be increased again from 14% to 18% for disposals made on or after 6 April 2026.

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