CAPITAL GAINS TAX AND INHERITANCE TAX

Capital Gains Tax
2022/23
2021/22
Annual Exempt Amount
£12,300
£12,300
Annual Exempt Amount for Trustees
£6,150
£6,150
Basic rate taxpayer
10%
10%
Higher rate taxpayer
20%
20%
Business asset disposals (first £1 million)
10%
10%
Basic rate taxpayer – residential property
18%
10%
Higher rate taxpayer
28%
28%
*Note that the Annual Exempt Amount is set to drop to £3,000 (£1,500 for Trustees) in 2024/25.
Inheritance Tax
Nil Rate Band
£325,000
£325,000
Residence Nil Rate Band
£175,000
£175,000
Taper threshold – Residence Nil Rate Band*
£2,000,000
£2,000,000
Estate rate
40%
40%
Chargeable lifetime transfers
20%
20%

* Residence Nil Rate reduced by £1 for every £2 that estate exceeds this amount.

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