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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
, see all updates

Rates of tax: introduction

TCGA92/S4, TCGA/S4A, F(No.2)(10/SCH1

This guidance explains the rates of tax applicable to individuals.

For rates applicable to

  • companies, see CG40201
  • trusts and settlors, see CG35200+
  • personal representatives, see CG30610.

Rates of Capital Gains Tax have varied since the tax was introduced in 1965. This page details the rates that have applied since 2000-2001.

6 April 2000 to 5 April 2008

Chargeable gains are taxed as if they are the top slice of income.

The starting rate of 10% could be used against chargeable gains from 2000-01 onwards.

6 April 2008 to 22 June 2010

For chargeable gains accruing to individuals from 6 April 2008 to 22 June 2010 the rate of Capital Gains Tax was 18 per cent. There was no link with the individual’s personal rates of tax. So if an individual had net chargeable gains of £20,000 the charge was at 18 per cent on those gains after deducting the annual exempt amount.

Unused personal allowances and other unused Income Tax reliefs, for example capital allowances and allowable charges, could not be set against chargeable gains. The only exceptions to this rule are listed below.

The following Income Tax reliefs could be taken into account as deductions from chargeable gains

  • relief for trading losses (ITA07/S64 applied to Capital Gains Tax by TCGA92/S261B), see BIM75420 onwards
  • relief for post-cessation expenditure (TCGA92/S261D), see CG15802
  • relief for certain post-employment expenses (TCGA92/S263ZA (3)), see CG15803.