Capital Gains Tax

Tax year 2020/2021


Annual Exemption£12,300£12,000£11,700£11,100£11,100£11,100£11,000£10,900
Rate for gains above basic rate band20%20%20%20%20%28%28%28%
Rate for gains within basic rate band10%10%10%10%10%18% 18%18%
Gains on residential property (that do not qualify for PPR within basic rate band)18%18%18%18%18%
Gains on residential property (that do not qualify for PPR above basic rate band)28%28%28%28%28%

Entrepreneurs Relief

How ER works

Chargeable gains covered by the ER are taxed at an effective tax rate of 10%.

The amount of ER given depends on the amount of the individual’s ER Lifetime Allowance after taking previous disposals into account at the date of the disposal.

The Lifetime Allowance is as follows:

£1 million from 11 March 2020.
£10 million from 6 April 2011.
£5 million from 23 June 2010.
£2 million from 6 April 2010 to 22 June 2010.
£1 million for 2008/09 to 2009/10
Gains in excess of the lifetime allowance will be charged at the CGT rate applicable for that period.