Capital Gains Tax Rates 2023 24 Calculator

Calculate your capital gains tax liability for the 2023-24 tax year with our accurate and up-to-date calculator.

Capital Gains Tax Rates 2023-24: Complete Guide

Capital Gains Tax (CGT) is a tax on the profit you make when you sell (or ‘dispose of’) an asset that’s increased in value. In the 2023-24 tax year, significant changes were made to CGT allowances and rates, making it more important than ever to understand your potential liability.

Key Changes for 2023-24

• Reduced Annual Exempt Amount: The tax-free allowance dropped from £12,300 to £6,000 in 2023-24, and will halve again to £3,000 in 2024-25.
• Higher Property Rates: Residential property gains (excluding main homes) are taxed at 18% or 28% for higher-rate taxpayers.
• Different Rates for Assets: Most other assets (shares, crypto, etc.) are taxed at 10% or 20% depending on your income tax band.
• 30-Day Reporting Rule: UK residents must report and pay CGT on residential property sales within 30 days of completion.

Capital Gains Tax Rates 2023-24

Asset Type	Basic Rate Taxpayer	Higher/Additional Rate Taxpayer	Annual Exempt Amount (2023-24)
Residential Property (not main home)	18%	28%	£6,000
Other Chargeable Assets (shares, crypto, business assets, etc.)	10%	20%

Your applicable rate depends on:

1. The type of asset you’re selling
2. Your total taxable income for the year
3. How much of your annual exemption you’ve already used
4. Whether you’re eligible for any reliefs (like Business Asset Disposal Relief)

How to Calculate Your Capital Gains Tax

Follow these steps to work out your CGT liability:

1. Calculate Your Gain: Sale price minus purchase price minus allowable costs (improvement expenses, selling fees, etc.)
2. Apply Reliefs: Subtract any available reliefs (like Private Residence Relief if applicable)
3. Deduct Annual Exempt Amount: Subtract £6,000 (2023-24) from your total gains
4. Add to Taxable Income: Your remaining gain is added to your taxable income to determine which tax band it falls into
5. Apply Appropriate Rate: Use the rates from the table above based on your total income and asset type

Common Capital Gains Tax Reliefs

Private Residence Relief

If you’re selling your main home, you typically won’t pay CGT on any gain, provided:

• The property has been your only/main residence throughout ownership
• You haven’t let out part of it (with some exceptions)
• The garden/grounds are less than 5,000 sq m

Business Asset Disposal Relief

Formerly known as Entrepreneurs’ Relief, this reduces the CGT rate to 10% on qualifying business assets, with a lifetime limit of £1 million in gains.

Gift Hold-Over Relief

Allows you to defer paying CGT when you give away business assets or sell them for less than they’re worth to help the buyer.

Capital Gains Tax on Property vs Other Assets

Factor	Residential Property	Shares & Investments	Cryptocurrency	Business Assets
Basic Rate	18%	10%	10%	10% (with relief)
Higher Rate	28%	20%	20%	20% (without relief)
Reporting Deadline	30 days	Self Assessment	Self Assessment	Self Assessment
Common Reliefs	Private Residence Relief, Lettings Relief	Bed & Breakfasting (restricted)	Pooling rules for frequent transactions	Business Asset Disposal Relief

When You Don’t Need to Pay Capital Gains Tax

You don’t usually need to pay CGT on:

• Your main home (with some exceptions)
• Personal possessions worth £6,000 or less (when sold)
• Your car (unless used for business)
• UK government gilts and Premium Bonds
• Betting, lottery or pools winnings
• Gifts to your spouse/civil partner (unless you’re separated)
• Gifts to charity
• Assets in ISAs or PEPs
• Foreign currency for personal use

How to Reduce Your Capital Gains Tax Bill

1. Use Your Annual Exemption: Both you and your spouse have a £6,000 allowance (2023-24). Transferring assets between spouses before sale can double your exemption.
2. Time Your Disposals: Spread gains over multiple tax years to make full use of annual exemptions.
3. Offset Losses: Capital losses can be offset against gains in the same or future tax years.
4. Claim Reliefs: Ensure you’re claiming all available reliefs like Business Asset Disposal Relief.
5. Invest in EIS/SEIS: Investments in Enterprise Investment Schemes or Seed Enterprise Investment Schemes can defer CGT.
6. Consider Trusts: In some cases, transferring assets to a trust can help manage CGT liabilities.
7. Pension Contributions: Increasing pension contributions can reduce your taxable income, potentially lowering your CGT rate.

Reporting and Paying Capital Gains Tax

How you report and pay CGT depends on the asset type:

UK Residential Property

You must report and pay any CGT due within 30 days of completing the sale using HMRC’s online service. This applies even if you have no tax to pay.

Other Assets

Gains on other assets are reported through Self Assessment. You’ll need to complete the Capital Gains pages of your tax return. The deadline is 31 January following the end of the tax year (31 January 2025 for 2023-24 gains).

If you’re not already in Self Assessment, you’ll need to register with HMRC by 5 October following the tax year in which you had gains.

Capital Gains Tax for Non-UK Residents

Non-UK residents may still need to pay CGT on:

• UK residential property (regardless of when it was purchased)
• UK commercial property and indirect disposals (for properties purchased on or after 6 April 2019)
• Other UK assets if you return to the UK within 5 years of leaving

Non-residents have the same annual exempt amount as UK residents (£6,000 for 2023-24) but must report all disposals of UK property within 30 days, even if no tax is due.

Capital Gains Tax on Cryptocurrency

HMRC treats cryptocurrency as a chargeable asset for CGT purposes. You’ll need to pay CGT when you:

• Sell crypto for fiat currency
• Exchange one crypto for another
• Use crypto to pay for goods/services
• Give away crypto (unless to a spouse or charity)

Special rules apply for:

• Pooling: HMRC requires you to pool same-type crypto assets acquired on the same day
• Bed & Breakfasting: Anti-avoidance rules prevent selling and immediately rebuying to crystallise losses
• Forks/Airdrops: May be taxable as income rather than capital gains

Crypto gains are taxed at the same rates as other assets (10% or 20%) unless they qualify as business assets.

Capital Gains Tax Planning for 2023-24 and Beyond

With the annual exempt amount reducing to £3,000 in 2024-25, careful planning is more important than ever. Consider these strategies:

1. Use the 2023-24 Allowance: Realise gains up to £6,000 before 5 April 2024 to use this year’s higher allowance.
2. Transfer Assets to Spouse: Doubles your annual exemption to £12,000 for 2023-24.
3. Crystalise Losses: Sell underperforming assets to offset against gains.
4. Invest in Tax-Wrapped Accounts: ISAs and pensions are free from CGT.
5. Consider Business Structures: Holding investments through a company may be more tax-efficient in some cases.
6. Defer Gains: If possible, delay disposals until a future tax year when your income might be lower.
7. Claim All Reliefs: Ensure you’re not missing out on available reliefs like Business Asset Disposal Relief.

Frequently Asked Questions

What counts as a ‘disposal’ for CGT purposes?

A disposal includes selling an asset, gifting it (unless to a spouse), transferring it to someone else, or receiving compensation for it (e.g., insurance payouts).

How do I calculate the cost basis for an inherited asset?

For inherited assets, the cost basis is usually the market value at the date of death (probate value), not what the original owner paid.

Can I offset capital losses against income?

No, capital losses can only be offset against capital gains, not against other income like salary or dividends.

What happens if I don’t report my capital gains?

HMRC can charge penalties for late reporting (initial £100 fine) and interest on late payments. In serious cases, they may investigate for tax evasion.

Expert Resources and Further Reading

For official guidance, consult these authoritative sources:

• GOV.UK: Capital Gains Tax Overview
• HMRC: CGT Rates and Allowances (Official Tables)
• Harvard Law School: International Tax Program (Comparative Analysis)

For complex situations, we recommend consulting a chartered tax adviser who specialises in capital gains tax planning.