Capital Gains Tax now affects far more UK investors than it did three years ago. The annual exempt amount fell to £3,000 from 2024/25, and rates on shares rose at the Autumn Budget 2024.

Key takeaways

  • Annual exempt amount: £3,000 in 2025/26 (HMRC).
  • CGT on shares/funds: 18% basic rate, 24% higher/additional rate from 30 October 2024.
  • Spouse transfers between civil partners are CGT-free (HMRC).
  • Losses can be offset against gains in the same or future years.
  • ISA and pension wrappers shelter gains completely.

How CGT is calculated

Gain = proceeds - Acquisition cost - allowable costs - reliefs. Annual exempt amount is deducted before tax.

Anti-avoidance rules

The 30-day 'bed and breakfast' rule prevents same-share repurchase to crystallise losses (HMRC).

Practical planning

Bed and ISA, spousal use, loss harvesting and spreading disposals across tax years can all reduce the bill.

What this means for UK investors

With the CGT allowance reduced and rates rising, UK investors should plan disposals carefully and use ISA wrappers wherever possible.

Risks to watch

  • Missing 30-day rules.
  • Underestimating cumulative gains.
  • Future Budget changes.
  • Property CGT 60-day reporting (HMRC).