Capital Gains Tax: Essential Changes for 2024-25 and Beyond
The landscape of capital gains tax changes has evolved significantly over recent months. These capital gains tax changes have major implications for property investors and business owners planning asset disposals in the coming tax year.
Understanding these capital gains tax changes is crucial for effective tax planning, especially with the significant rate increases that came into effect from October 2024.
Capital Gains Tax Allowance
The annual capital gains tax allowance for the 2024-25 tax year is set at £3,000. This means any chargeable gains equal to or less than this amount should not give rise to a tax liability.
For the 2025-26 tax year, the capital gains allowance will remain at £3,000.
Recent Changes to Capital Gains Tax Rates
As you may be aware, several rates for capital gains have changed. The current rates are as follows:
| From 6th April 2024 to 29th October 2024 | From 30th October 2024 | 2025-26 | |
| Non-Residential Property Gains – Basic Rate | 10% | 18% | 18% |
| Non-Residential Property Gains – Higher Rate | 20% | 24% | 24% |
| Residential Property Gains – Basic Rate | 18% | 18% | 18% |
| Residential Property Gains – Higher Rate | 24% | 24% | 24% |
| Business Asset Disposal Relief (BADR) | 10% | 10% | 14% |
| Carried Interest – Basic Rate | 18% | 18% | 32% |
| Carried Interest – Higher Rate | 28% | 28% | 32% |
Planning for Business Asset Disposal Relief
The rate of Business Asset Disposal Relief will increase significantly from 6th April 2026, rising from 10% to 14%. This represents an important consideration for business owners contemplating a sale.
If you’re considering disposing of business assets, it might be worthwhile accelerating any planned disposals. Prior to taking action, you’ll need to consider various other factors in the round.
How We Can Help with Capital Gains Tax Changes
At Lewis Brownlee, our expert tax advisers are up-to-date with all capital gains tax changes. We can help you:
- Assess the impact of these changes on your specific circumstances
- Develop strategies to optimise your tax position
- Time disposals to maximise available reliefs
- Consider alternative structures that might be more tax-efficient
With offices in Chichester, Midhurst and Whiteley, our team of Chartered Accountants and Tax Advisers is perfectly positioned to support clients across the South Coast with navigating these significant capital gains tax changes.
Contact us today to discuss how these changes might affect you and what steps you can take to prepare.
☎️ Chichester: 01243 782 423 ☎️ Midhurst: 01730 817 243 ☎️ Whiteley: 01489 287 782
Author Bio
Lewis Pridgeon | Tax Compliance Manager
Lewis joined the tax team in 2013 and has since become a full member of the Association of Taxation Technicians. He has extensive knowledge across many areas of tax and accountancy, with a particular focus on personal tax clients. Lewis has developed expertise in advising non-resident landlords and specialises in agricultural and horticultural tax planning.
Let us guide you through the details and help you prepare for what lies ahead. Contact us for expert advice on your tax matters.
If you’d like to speak to one of our experts, please call 01243 782 423. Alternatively, please email us from our contact page and we will be in touch!
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