The higher rate of capital gains tax for residential property gains will be reduced
The government will introduce legislation in the Spring Finance Bill 2024 to reduce the higher rate of Capital Gains Tax for residential property gains from 28% to 24%.
The change will take effect from 6 April 2024.
At present, under existing regulations, gains made on disposals of residential property that do not qualify for PRR are chargeable to CGT at 18% for any gains that fall within an individual’s unused basic rate band and 28% where the chargeable gains exceed the unused part of their basic rate band. Higher rate taxpayers pay 28% on all gains from residential property disposals.
Legislation will be introduced in the Spring Finance Bill 2024 to amend section 1H of TCGA 1992 to reduce:
The lower rate will remain at 18% for any gains that fall within an individual’s basic rate band.
The higher rate of 28% remains for gains on carried interest falling within the higher rate bands for individuals and personal representatives.