Capital Gains Tax Allowance 2024/24 Uk. If you have unused allowance in a given tax year, consider planning your asset disposals to maximise this benefit. The income tax additional rate threshold for 2023/23 is now £125,140.
The annual exemption for 2023/24 is £6,000, however, as announced in the november 2022 budget it will reduce to £3,000 from 6 april 2024. This is frozen until 2026.
How Will The Changes Affect You?
How easy this is to do depends on the assets you are selling.
Capital Gains Tax Annual Exempt Amount Reduced.
The higher rate of income tax threshold for 2023/24 is £50,270.
In 2024, Every Individual In The Uk Has A Cgt Allowance, Meaning You Can Realise Gains Up To A Certain Amount Without Paying Any Cgt.
Images References :
1) Use Your Cgt Allowance.
The simplest way to avoid capital gains tax is to regularly use your capital gains tax allowance (officially known as your annual exempt amount or aea).
Capital Gains Tax Is A Tax On The Profit (‘Gain’) When Something (An ‘Asset’) That’s Increased In Value Is Taken Out Of Or Put Into A Trust.
Capital gains tax allowance has shrunk (again) the cgt allowance was cut from £12,300 to £6,000 for the 2023/24 tax year, and the annual exemption halved again on 6 april this year.