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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.

  2018/19 2017/18
Annual exemption
Individuals, estates £11,700 £11,300
Most trusts £5,850 £5,650
Tax rate
Individual (to basic rate limit)* 10% 10%
Individual (above basic rate limit)* 20% 20%
Entrepreneurs’ Relief (ER)** 10% 10%
Trusts, estates* 20% 20%

* 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 be eligible for a 10% CGT rate on lifetime gains up to £10m, if disposed of after 5 April 2019 by someone who is neither a paid officer nor employee of the company (Investors’ Relief).