Capital Gains Tax Explained Simply

What Changed in October 2024?

Following the Autumn Budget, CGT rates increased:

AssetBasic RateHigher RateAll assets (inc. property)18%24%

Annual Exempt Amount

For 2025/26, the first £3,000 of gains is tax-free (down from £12,300 in 2022/23).

How to Reduce Your CGT Bill

Use your annual exempt amount each year

Bed and ISA — sell assets, crystallise gains within your allowance, repurchase in an ISA

Transfer to spouse — both partners have a £3,000 allowance

Deduct allowable costs — purchase price, solicitor fees, improvement costs

Disclaimer: This guide is for information only and does not constitute tax or financial advice. Tax rules are complex and subject to change. Always seek professional advice for your specific circumstances.