CGT Allowance

Hey I want to know that what is the Capital Gains Tax CGT allowance as I am going to start a new business in the UK so can you please put some light

[Rajkumar Agarwal]

Capital Gains Tax CGT is tax on the benefit on selling of something which is increased in value.

Suppose you bought a painting for £6,000 and sold it later for £25,000.

It means you made a gain of £19,000 (£25,000 minus £6,000).

CGT Allowance

The CGT allowance rates remain at 18% for non and basic rate taxpayers, while higher and additional rate taxpayers, as well as most trusts, will pay at a rate of 28%.

The CGT allowance increased by £100 to £11,00 for the 2014-15 tax year, and by another £100, to £11,100 for the 2015-16 tax year

The annual tax-free allowance provides you to give a certain amount of gain each year before you have to pay tax.

Almost everyone who is liable to Capital Gains Tax gets this tax-free allowance

Some assets are tax-free.

You also don’t have to pay Capital Gains Tax if all your gains in a year are under your tax-free allowance.

Disposing of an asset

Swapping it for something else

Getting compensation for it

Selling it

Giving it away as a gift, or transferring it to someone else


Capital gains tax is charged at two rates.

Those who pay basic rate income tax pay CGT at 18%, but higher rate taxpayers are charged CGT at 28%.


There’s one CGT Allowance Amount for:

Most individuals who live in the UK

Executors or personal representatives of a deceased person’s estate

Trustees for disabled people