Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
, see all updates

The charge to Capital Gains Tax

Any TCGA92/S87 gain is added to the beneficiary’s other chargeable gains and charged at their appropriate rate of Capital Gains Tax.



A taxpayer’s personal losses cannot be set against any section 87 gains. Any personal losses should be set against their other gains and the balance carried forward.

Annual exempt amount

There are no restrictions on the use of the beneficiary’s annual exempt amount. It may be to the taxpayer’s advantage to have this set against any section 87 gains first to minimise any increase in the rate of tax, CG38795.

Annual exempt amount: non-domiciled beneficiary

See CG38805 for the effect on the annual exempt amount if a non-domiciled beneficiary claims the remittance basis.


The rate of Capital Gains Tax changed during 2010-11 from 18% to 18% or 28%. See CG21200 and CG21240. Any section 87 gains that accrues in 2010-11 is taxed at:

  • 18% if the capital payment was received before 23 June or
  • 18% or 28% if the capital payment was received on or after 23 June



The Capital Gains Tax rates were changed for 2016-17 and subsequent years. See CG10246. The rates that would apply were reduced by 8%, so rates of 10% or 20% will apply.