Reporting Capital Gains for 2024-25
- Michael Roberts FPFS
- Jul 14
- 2 min read
In the Budget on 30th October 2024, there were some announcements about changes to Capital Gains Tax which were effective immediately. In this article we'll look at what changed, and how you can report your gains in the most effective manner.
A reminder of what has changed
The Government simplified CGT rates. From 30 October 2024, all chargeable assets – whether it’s shares, a second property, or a personal investment – will be taxed at the same rates:
18% for basic-rate taxpayers (up from 10%)
24% for higher or additional-rate taxpayers (up from 20%)
This replaces the previous system where different assets were taxed at different rates.
How do I know what rate applies?
The rate you pay depends on your total taxable income for the year. If part of your gain takes you over the basic-rate threshold (currently £37,700), you’ll pay a combination of the two rates.
For example:
You earn £30,000 salary, with no other sources of income or interest
You realise a gain of £15,000 (after allowances)
That puts you £7,300 over the basic-rate threshold:
£7,700 of the gain taxed at 18% = £1,386
£7,300 taxed at 24% = £1,752
Total CGT: £3,138
Making the most of your Annual Exemption
Everyone gets a Capital Gains Tax exemption each year – £3,000 for 2024/25.
You can use it against your gains to reduce the amount of tax due.
If you’ve made gains both before and after 30 October, you can choose where to apply your allowance.
It makes sense to use it on the gain that would otherwise be taxed at the higher rate.
A quick example
Let’s say you:
Sold one asset in September 2024 and made a £5,000 gain (taxed at 10%)
Sold another in November 2024 and made a £10,000 gain (taxed at 18%)
You still have your full £3,000 exemption to use
You can apply it either way – but here’s the difference:
Option A – Apply to the September gain:
£2,000 taxed at 10% = £200
£10,000 taxed at 18% = £1,800
Total tax: £2,000
Option B – Apply to the November gain:
£5,000 taxed at 10% = £500
£7,000 taxed at 18% = £1,260
Total tax: £1,760
By using your exemption where the rate is higher, you save £240.
What about losses?
Capital losses can also be set against your gains – and just like with the Annual Exemption, they’re more valuable when used against higher-rate gains.
In summary
From 30 October 2024, CGT rates change to 18% and 24%
The Annual Exemption remains at £3,000 – but how you use it matters
You can apply it (and any losses) to the gains taxed at the highest rate
Let us know if you’d like to talk it through. We’re always happy to help.
Best wishes,
Michael Roberts FPFS
Chartered Financial Planner and Director
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