CGT Allowance 2023/24 – Rates, Rules and Tax Planning Tips

For the 2023/24 tax year, the Capital Gains Tax (CGT) annual exempt amount – the profit you can make before paying tax – is set at £6,000 for individuals and estates. This figure represents a dramatic reduction from the £12,300 threshold that applied just a year earlier, following policy changes announced in the Autumn Statement 2022.

Many taxpayers who previously fell outside the CGT net now face a potential tax liability. Understanding the precise allowance, how it applies to different assets like property, and the rates charged on gains above this threshold is essential for anyone planning to sell assets or investments during the 2023/24 financial year.

The reduction is part of a broader government strategy to increase revenue, forecast to raise an additional £1.6 by the end of the 2027/28 tax year. With a further cut already legislated for 2024/25, the current tax year presents a critical window for strategic planning.

## What is the CGT allowance for the 2023/24 tax year?

The annual exempt amount is deducted from your total chargeable gains If your total profit after allowable losses is £6,000 or less, no tax is payable. Any exceeding this limit is taxed at the appropriate rate based on your income and the type of asset sold.

The tax – The 2023/24 CGT allowance was slashed to £6,000 from £12,300, a 50% cut
– After 2023/24, the allowance falls further to £3,000 for 2024/25 onwards
– Property gains still from the same annual exempt amount but face higher tax rates
– Taxpayers should consider using allowances before the end of the tax year to avoid higher tax
– assets between spouses can effectively double the allowance up to £12,000 jointly in 2023/24

## How does the 2023/24 CGT allowance compare to previous and future years?

The current allowance mid-point in a rapid downward trend. In 2021/22 and 2022/23, the annual exempt amount was frozen at £12, originally set to remain until April 2026 following the 2021 Budget. The Autumn Statement 2022 reversed that plan abruptly.

For 2024/25 subsequent years up to at least 2026/27, the allowance has been legislated at just £3,000 for individuals. This represents all-time low for the relief. The trust allowance has also been halved proportionately, moving from £6,150 in 2022/23 to £3 2023/24, and then down to £1,500 from 2024/25 onward.

A higher rate taxpayer who used the full £12,300 allowance in 2022/23 will pay up to £1 CGT in 2023/24 with the £6,000 limit. In 2024/25, that additional liability rises to as much as £2 compared to years prior.

figures published the of these reductions. The government’s intent, outlined in the documents, was to increase fiscal revenue as part of broader consolidation measures.

### What about 2026/27 and beyond?

As of the most recent sources, the allowance for both 2025/26 and /27 remains at £3,000. The government has not confirmed whether this figure will rise with inflation after that point, nor has it indicated any further reductions.

## What is the CGT allowance for property in 2023/24?

The same £6,000 annual exempt amount applies to gains from selling property. However, the tax rate on the profit above that significantly higher for residential property compared to other assets. For 2023/24, basic rate taxpayers pay 18% on residential property gains, while higher rate taxpayers 28%.

This compares to standard rates of 10% (basic) and 20% higher for assets such as shares, collectibles, or business assets not qualifying for relief. guidance these differential rates remain for 2023/24.

For trusts and estates, a flat rate 20% generally applies to most assets, though specific rules for disabled person trusts can offer different treatment. sources clarify that trust allowances are set at half the individual level.

## How to calculate CGT using the 2023/24 allowance?

Calculating your CGT involves a straightforward process. First, determine your total capital gain by subtracting the acquisition cost (plus any allowable expenses) from the disposal proceeds. Then deduct any allowable capital from the same tax year or unused brought forward. Finally, subtract the annual exempt amount of £6,000 the net gain.

The resulting figure is your taxable gain, which is then charged at the rate determined your total taxable income and the type of asset disposed of.

### Example calculation for a property sale in 2023/24

Consider a property sold for £75,000 originally acquired for £37,500. The capital gain is £37,500. After deducting taxable gain stands £31,500. For a higher rate taxpayer, the CGT due at 28% would be £8,820. For a basic rate taxpayer, it would be £5,670 at 18%.

How married couples can optimise the allowance

Married couples and civil partners each qualify for their own £6 allowance. Transferring assets between spouses is exempt from CGT. If a couple holds an asset jointly and sells it, can effectively double combined exemption to £12,000 2023/24.

Watch the 2024/25 cliff edge

The allowance halves again to £3,000 on 6 April 2024. Anyone with potential gains exceeding £3,000 should consider crystallising those gains before . Here are some common questions we get:

**FAQ**

No. The CGT annual exempt amount is use-it-or-lose-it. Any unused allowance cannot be carried forward.

For most trusts, the allowance is £3,000 in 2023/24 (half the individual).

*Does the CGT allowance apply to all assets?* Yes, the there are higher rates on property. a.

** Each individual has their own allowance. Married couples and civil partners can combine allowances up to £12 in 2023/24) by transferring assets.

*What if my gain £6,000?*
No CGT if total taxable gain after losses is £6,000 or less. Above that, taxed at applicable rate.

**Does the allow carried interest or cryptocurrency?** subject to special rules.

*Where can I find an official calculator for CGT 2023/24?* HMRC does not provide an official calculator, but you can use the government’s Capital Gains Tax tool at [https://www.gov.uk/tax-return-forms-and-calculators] or third-party calculators.

What should taxpayers do now given the 2023/24 allowance?

With the allowance at £6,000 for 2023/24 and dropping to April consider selling assets with gains above these thresholds should act promptly. Review total for the current tax year, spouse exemptions, and timing of disposals can significantly reduce overall tax liability. [Capital Gains rates and allowances update]

For the 2023/24 tax year, the Capital Gains Tax (CGT) annual exempt amount – the profit you can make before paying tax – is set at £6,000 for individuals and estates. This figure represents a dramatic reduction from the £12,300 threshold applied just a year earlier, following policy changes announced in the Autumn Statement 2022.

Many taxpayers who previously fell outside the CGT net now face a potential liability. Understanding the precise allowance, how it applies to different assets the rates charged on gains above this threshold is essential for anyone planning to sell assets or investments during the 2023/24 financial year.

The reduction is part of a broader government strategy to increase revenue, forecast to raise an additional £1.6 billion by the end of the 2027/28 tax year a further cut already legislated for 2024/25, the current tax year presents a critical window for strategic planning.

## What is the CGT allowance for the 2023/24 tax year

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The annual exempt amount is deducted from your total chargeable gains in a single tax year. If your total profit after allowable losses is £6,000 or less, no tax is payable gain exceeding this limit is taxed at the appropriate rate based on your income and the type of asset sold.

2023/24 CGT allowance was slashed to £6,000 from £12, a 50% cut
– After 2023/24, the allowance falls further to 202 for 2025 onwards
– Property gains still benefit from the same annual exempt amount but face higher tax rates
– Taxpayers should consider using allowances before the end of the tax year to avoid higher tax
Transferring assets between spouses can effectively double the allowance (up to £12,000 jointly in 2023/24)

## How does the 2023/24 CGT allowance compare to previous and future years?

The current allowance of £6,000 sits mid-point in a rapid downward trend. In 2021/22 and 2022/23, the annual exempt amount was frozen at £12,300, a level originally set to remain until April 2026 following the 2021 Budget. The Autumn Statement 2022 reversed that plan abruptly.

For 2024/25 and subsequent years up to at least 2026/27, the allowance has been legislated at just £3,000 for. This represents an all-time low for the relief trust allowance has also been halved proportionately, moving from £6,150 in 2022/23 to £3,000 in 2023/24, and then down to £1,500 from 2024/25 onward.

**Financial impact for higher rate taxpayers**A higher rate taxpayer who used the full £12,300 allowance in 2022/23 will pay up to £1,764 more CGT in 2023/24 with the £6,000 limit. In 2024/25, that additional liability rises to as much as £2,604 compared to two years prior.

[Official HMRC figures published online](https://www.gov.uk/government/publications/rates-and-allowances-capital-gains-tax/capital-gains-tax-annual-exempt-amount target _blank rel=”noopener” ) confirmed the timeline of these reductions. The government’s intent, outlined in the [Autumn Statement ](/government/publications/autumn-statement-2022″ _blank rel=”noopener”) was to increase fiscal revenue as part of broader consolidation measures.

### What about 2026/27 and beyond?

As of the most recent sources, the allowance for both 2025/26 and 2026/27 remains at £3,000. The government has not confirmed whether this figure will rise with inflation after that, nor has any further reductions.

## What is the CGT allowance for property in 2023/24?

The same £6,000 annual exemptamount applies to gains from selling property. However, the tax rate charged on the profit above that threshold is significantly higher for residential property compared to other assets. For 2023/24, basic rate taxpayers pay 18% on residential property gains, while higher rate taxpayers pay 28%.

This compares to standard rates of 10% (basic) and 20% (higher) for assets such as shares, collectibles, or business assets not qualifying for relief. [The official GOV.UK guidance](/guidance/capital-gains-tax-rates-and-allowances” blank rel=”noopener”) these differential remain unchanged for 2023/24.

For trusts and estates, a flat rate of 20% generally applies to most assets, though specific rules for disfeatured trusts can differ [Professional sources](/shorthousemartin.co.uk/tax-rates-2023-24 target=”_blank rel=”noopener”) trust at half the individual level.

## How to calculate CGT allowance

Calculating your CGT liability involves a straightforward process. First, determine your total capital gain by subtracting the acquisition cost (plus any allowable expenses) from the disposal proceeds. Then deduct any allowable capital losses from the same tax year or unused losses brought forward previous years subtract the annual exempt amount of £6,000 from the net gain.

The resulting figure is your taxable the rate determined income and the type of asset.

### Example calculation for a property sale in 2023/24

Consider a property sold for £75,000 originally acquired for £37,500 gain is £37,500. After deducting the £6,000 annual exemption, the taxable gain stands at £31,500. For a higher rate taxpayer the CGT due at 28% would be £8,820. For a basic rate taxpayer, it would at 18%.

### How married couples can optimise the allowance

Married and civil partners each qualify for their own £6,000 allowance. Transferring assets between spouses is exempt from CGT. If a couple holds an asset jointly and sells it, they can effectively double their combined exemption to £12,000 in.

**Watch the 2024/25 cliff edge**The allowance halves again to £3,000 on 6 April 2024. Anyone with potential gains £3,000 should consider crystallising those gains before the end of the 2023/24 tax year to benefit from the £6, allowance missed, the lower allowance cannot be reclaimed.

## Timeline of CGT allowance reductions

1. **2021/22** – Allowance held at £12,300 under the original freeze plan.
2. **2022/23** – Last full tax year with a £12,300 allowance for individuals.
3. **2023/24** – Allowance reduced to £6,000 following the Autumn Statement 2022 announcement.
4. **2024/25** – Further reduction to £3,000 confirmed in legislation.
5. **2025/26** Allowance remains at £3,000 with no increase.
6. **2026/27** – Allowance held at £3,000 as per current legislation.

The allowance was originally frozen at £12,300 from April 2021 through as noted in independent tax experts.

## FAQ

**Can I carry forward unused CGT allowance from 2023/24?** No. The CGT annual exempt amount is use-it-or-lose-it. Any unused allowance cannot be carried forward to future tax years.

**What is the CGT allowance for trusts in 2023/24?** For most trusts, the allowance is £3,000 in 2023/24 (half the individual amount).

**Does the CGT allowance apply to all assets?** Yes, the allowance applies to total chargeable gains after deducting losses, regardless of asset type. However, gains on residential property are taxed at higher rates.

**Is the CGT allowance per person or per couple?** Each individual has their own allowance. Married couples and civil partners can combine allowances (up to £12,000 in 2023/24) by transferring assets.

**What happens if my gain is exactly £6,000?** If your total taxable gain (after losses) is £6,000 or less, you pay no CGT. Any gain above £6,000 is taxed at the applicable rate.

**Does the allowance apply to carried interest or cryptocurrency?** Carried interest and cryptocurrency gains are subject to special rules. The standard allowance applies to most crypto gains, but check HMRC guidance.

**Where can I find an official calculator for CGT 2023/24?** HMRC does not provide an official calculator, but you can use the government’s Capital Gains Tax tool at [https://www.gov.uk/tax-return-forms-and-calculators](https://www.gov.uk/tax-return-forms-and-calculators) or third-party calculators.

## What should taxpayers do now given the 2023/24 allowance?

With the allowance set at £6,000 for 2023/24 and dropping to £3,000 from April 2024, anyone considering selling assets with gains above these thresholds should act promptly. Reviewing total chargeable gains for the current tax year, utilising spouse exemptions, and considering the timing of disposals can significantly reduce overall tax liability. [Capital Gains Tax rates and allowances (2024/25 update)](/capital-gains-tax-rates-2024-25) provides further detail on what to expect.