What you need to know for 2024/25
Posted on 1st May 2024
As we embark on a new tax year, individuals and businesses alike need to stay informed about the latest tax updates and changes that may impact their financial planning. The tax landscape is ever-evolving, with new regulations and updates introduced each year. In this and forthcoming blog posts, we'll explore the key tax changes for the 2024/25 tax year and what they mean for taxpayers.
Capital Gains Tax
Capital Gains Tax (CGT) is one of the least common taxes on income, and for many it won’t apply. However, if you sell or give away an asset worth more than £3,000, you could have to pay CGT. This does not apply to main homes, cars, lottery winnings, among other things.
Each year individuals have an annual exempt amount that allows you to receive some gains tax-free. Above this you pay CGT on all gains.
2024/25 Capital Gains Tax Rates
Annual exempt amount £3,000 for individuals
Standard CGT rate 18% on residential property, 10% on other assets
Higher rate CGT 24% on residential property, 20% on other assets
The key note here is that you only have 60 days from the completion of the sale of your property to report and pay your capital gains tax to HM Revenue & Customs.
If you were to sell assets to your spouse or civil partner you won’t have to pay CGT unless:
a) You separated and didn’t live together during that tax year
b) The assets you gave them were sold on via their business
It is worth either giving or selling your assets to your spouse/civil partner if you’ll exceed 2024/25’s exempt amount of £3,000 but your partner won’t. That way neither of you will pay the CGT.
However, if your spouse or civil partner were to sell the asset at a later date they may have to pay a gain.
Tagged as: Property
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