Domesday Live

Capital gains tax: how the rate has changed

Property and wealth. Capital gains tax is charged on the profit when an asset is sold for more than it cost. The first slice of gains each year is tax free. It was introduced in 1965. The rates for basic rate and higher rate taxpayers are shown separately.

Worth knowing

• From 1965 to 1988 gains were taxed at a flat 30%. From 1988 they were taxed at income tax rates, with taper relief from 1998 that cut the bill on assets held for longer. Taper relief ended in 2008, when a flat 18% began.
• The business asset disposal relief line is the effective rate on qualifying business sales. It was called entrepreneurs' relief until 2020.
• On 30 October 2024 the main rates rose to 18% and 24%, matching the rates already charged on residential property.
• The annual exempt amount was £1,000 when it began in 1977. HMRC's table starts in 2008.