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What is Capital Gain Tax?

Capital Gains Tax (CGT) is the tax a person has to pay on the gains/profit earned when an asset has been sold/disposed.

When You Need to Pay Capital Gain Tax?

CGT is only paid when the overall profit is more than the tax free allowance referred to as Annual Exempt Amount (AEA). For the year 2019/20, the Annual Exempt Amount for individuals and personal representatives is £12,000.

Capital Gains Tax for 2019/20 - Updated

What are the Capital gains tax rates for 2019-20? How much will I Pay?

There are two different rates applicable on capital gains - one for property and another one for other assets.

How much you pay will depend on the asset you've made a profit on and your tax band.

You can find below the applicable rates on Capital gains for year 2019/20.

Tax bracket CGT rate on assets CGT rate on property
Basic-rate payer 10% 18%
Higher or additional-rate payer 20% 28%

What are the CGT allowance for 2019-20?

The capital gains tax allowance in 2019-20 is £12,000, more than capital gains allowance of £11,700 available in 2018/19. This is the amount of profit you can make from an asset this tax year before any tax is payable.

If you are married or in a civil partnership, you are free to transfer assets to each other without any CGT being charged.

Changes in CGT Allowances for from 2018/19 to 2019/20:

You can find below the changes in CGT allowance for the tax years 2019-20.

Tax year 2018-19 2019-20
CGT allowance for an individual £11,700 £12,000
Couple's allowance (married or in a civil partnership only) £23,400 £24,000

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