Capital gains tax

CGT and Inheritance tax.

Capital Gains Tax (CGT) is payable by individuals, trustees and 'personal representatives' (PRs). Companies pay corporation tax on their capital gains.

There are annual tax free allowances (the 'annual exempt amount') for individuals, trustees and PRs. Companies do not have an annual exempt amount.

For individuals net gains are added to 'total taxable income' to determine the appropriate rate of tax. The standard rate applies only to the net gains which, when added to total taxable income do not exceed the 'basic rate band'.

Gains which qualify for 'Investors' Relief' are charged at 14% (10% for 2024/25) for the first £10m of qualifying gains.

Gains which qualify for 'Business Asset Disposal Relief' are charged at 14% (10% for 2024/25) for the first £1 million.

Individuals 2025/26 2024/25
Exemption £3,000 £3,000
Standard rate 18% 10%1/18%
Higher rate 24% 20%1/24%

Note...

  1. For disposals up to and including 29 October 2024.

The higher rate applies to higher rate and additional rate taxpayers.

Additionally, the rates of 18% and 24% may have applied to the disposal of certain residential property throughout 2024/25.

Trusts 2025/26
Exemption £1,500
Rate 24%1

Note...

  1. 20% for disposals up to and including 29 October 2024.

Interested?

Why not get in touch with Quarter Chartered Accountants today for more information.

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Chartered Accountants Ireland