IFM37130 - Overview: Charging provisions and capital gains tax rate
Charging provisions & Capital gains tax rate
TCGA92/S1H
TCGA92/S103KA focuses solely on the calculation of a chargeable gain arising from carried interest received by an individual who performs investment management services directly or indirectly in respect of an investment scheme under arrangements involving at least one partnership. In circumstances where carried interest gains arise to an individual outside of a partnership structure then TCGA92/S103KA does not apply but the gain is still taxed at higher rates in accordance with TCGA92/S1H(9)(b).
Capital Gains Tax rate - Prior to 6 April 2025
The capital gains tax (CGT) rate prior to 6 April 2025 was 28%, or 18% to the extent that an individual had any unused part of the basic rate band. Further details can be found at CG21000.
Capital Gains Tax rate - From 6 April 2025
Finance Act 2025 introduced a single CGT rate of 32% for all carried interest gains regardless of whether the individual has any unused part of the basic rate band.