Various aspects of capital gains targeted

The lower rate of capital gains tax will rise from 10% to 18% and the higher rate from 20% to 24%. These new rates came into effect on 30 October. The rates for business asset disposal relief and investors’ relief will rise gradually to 14% from 6 April 2025 and match the main lower rate of 18% from 6 April 2026.

In addition the lifetime limit is reduced from £10m to £1m for investors’ relief qualifying disposals made on or after 30 October 2024.

The 18% and 24% rates of capital gains tax that apply to residential property gains are unchanged.

Noting that the rate increases took immediate effect – James Austen partner at Collyer Bristow said: ‘This is only the second time in recent years that there has been a mid-year CGT rate rise and both HMRC and...