What is the Capital Gains Tax annual exempt amount for 2024/25?

For the 2024/25 tax year, the Capital Gains Tax (CGT) annual exempt amount is £3,000. This is the amount of capital gains you can make each year before you need to pay any CGT.

This is a significant reduction from previous years:

Key rules about the annual exempt amount:

• It applies per person, so a married couple can have a combined exemption of £6,000 if both dispose of assets.
• It cannot be carried forward. If you do not use your £3,000 exemption in a tax year, you lose it.
• It applies to your total net gains for the year, after deducting any allowable losses.

What counts as a chargeable gain?

CGT applies when you dispose of (sell, give away, or transfer) assets such as:

• Shares and investments (outside of ISAs and pensions)
• Second properties and buy-to-let properties
• Valuable personal possessions worth over £6,000
• Business assets

What is exempt from CGT?

• Your main home (Principal Private Residence Relief)
• Assets held in ISAs or pensions
• UK government gilts and Premium Bonds
• Personal possessions worth £6,000 or less
• Gains on qualifying Enterprise Investment Scheme (EIS) shares

With the exempt amount now at just £3,000, tax-efficient wrappers like ISAs and pensions have become even more important for sheltering investment gains.