01: Introduction

Relatively few people pay CGT each year – about 130,000 in 2009 according to HMRC estimates – but it can have a very considerable impact when it is payable.

CGT is charged on your net gains, i.e. the total chargeable gains that you realise on disposals during a tax year after deducting total allowable losses that you have realised in the same year or brought forward from previous years.

There were major changes to CGT from 6 April 2008 and a further important reform in June 2010. Broadly speaking, on gains realised from 23 June 2010 CGT is now charged at a flat rate of 18% for basic rate taxpayers and 28% on all gains for higher and additional rate taxpayers. Taper relief and indexation relief disappeared from April 2008 – but not the other reliefs (eg for main residences). There is also an 'entrepreneurs' relief' for certain business assets.

Companies are subject to corporation tax on chargeable gains that are calculated according to modified CGT rules.Last Updated