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capital-gains-tax

Capital Gains Tax

Capital Gains Tax is the tax due when you make a profit selling property or shares. There is a tax free allowance and relief available, and Franklin Underwood will assess your gain or loss and ensure that you only pay exactly what is owed.

  2019/20 2018/19
Annual exemption
Individuals, estates £12,000 £11,700
Most trusts £6,000 £5,850
Tax rate
Individual (to basic rate limit)* 10% 10%
Individual (above basic rate limit)* 20% 20%
Trusts, estates* 20% 20%
Entrepreneurs’ Relief (ER)** 10% 10%
Investors’ Relief (IR)*** 10% N/A

*Individuals are taxed at 18%/28% on gains on residential property and receipts of carried interest. Trusts and estates are taxed at 28% in these circumstances.

**ER is available for lifetime gains of up to £10m. Qualifying disposals include a trading business and shares in a trading company (from a minimum 5% holding) by an officer/employee. Various conditions apply.

***Shares in an unquoted trading company may qualify for IR on lifetime gains up to £10m, if disposed of after 5 April 2019 by someone who is not a paid officer of the company. Various conditions apply.