CGT Rate Changes in 2024-25: Two Rates in One Year

If you sold shares or other assets during the 2024-25 tax year, you may need to apply two different CGT rates – one for disposals before 30 October 2024 and another for disposals after. Here's how it works and what it means for your Self Assessment.

What changed on 30 October 2024

The Autumn Budget 2024 raised the main capital gains tax rates with immediate effect from 30 October 2024. For disposals of shares, funds, and other non-property assets:

Residential property rates stayed the same at 18% and 24%. The change only affected shares, funds, and other non-property assets – bringing them in line with property rates.

Since the non-property rates were raised to match property rates on 30 October 2024, 2025-26 is the first full tax year under unified CGT rates: 18% basic rate and 24% higher rate for all asset types, with no separate property vs. other assets distinction. (Business Asset Disposal Relief and Investors' Relief have their own rate of 14% from April 2025, rising to 18% from April 2026.)

The annual exempt amount

The tax-free annual exempt amount (AEA) for 2024-25 is £3,000 – the same as 2025-26. This was reduced from £6,000 in 2023-24 and £12,300 in 2022-23. You only pay CGT on gains above this threshold.

You apply the AEA once for the whole year, not separately for each rate period. Subtract it from your total gains before calculating tax.

How to calculate your tax: a worked example

Suppose you're a higher rate taxpayer and made these disposals during 2024-25:

Step 1 – Total gains: £8,000 + £5,000 = £13,000

Step 2 – Deduct annual exempt amount: £13,000 − £3,000 = £10,000 taxable

Step 3 – Split by rate period:

• Pre-30 October gain: £8,000
• Post-30 October gain: £5,000

The AEA of £3,000 reduces your total taxable gains to £10,000. You need to work out how much of the taxable amount falls in each period. HMRC's guidance allows you to set the AEA against gains in the most beneficial way – so apply it to the gains taxed at the highest rate. In this example, applying it against the post-October gains (taxed at 24%) saves you the most:

• Pre-30 October taxable: £8,000 at 20% = £1,600
• Post-30 October taxable: £5,000 − £3,000 = £2,000 at 24% = £480

Total CGT: £1,600 + £480 = £2,080

If you had applied the AEA against the pre-October gains instead, you'd pay £2,200 – so the allocation matters. And if the old 20% rate had applied to all your gains, you'd have paid £2,000. The mid-year increase costs you an extra £80 in this optimised example.

Reporting on Self Assessment

On your 2024-25 Self Assessment tax return, you'll report capital gains on the SA108 supplementary pages as usual. However, because of the mid-year rate change, you need to separate your gains into two pools:

1. Gains from disposals on or before 29 October 2024 – taxed at the old 10%/20% rates
2. Gains from disposals on or after 30 October 2024 – taxed at the new 18%/24% rates

HMRC requires you to identify which gains fall in each period. Your calculator report shows the disposal date for every transaction, so you can split them accordingly.

Common mistakes to avoid

Applying one rate to everything. If you just use 24% for all your 2024-25 gains, you'll overpay on pre-October disposals. If you use 20%, you'll underpay on post-October ones. Split them by date.

Forgetting the AEA dropped to £3,000. If you're used to the old £12,300 or even last year's £6,000, you may underestimate your tax bill. The AEA for 2024-25 is £3,000.

Confusing share matching dates with disposal dates. The rate that applies depends on when you sold, not when you bought. Even if your Section 104 pool includes shares purchased years ago, the disposal date determines the rate.

Thinking property rates changed too. Residential property was already at 18%/24%, so the October change doesn't affect property disposals – only shares, funds, and other assets.

What about 2025-26?

From 6 April 2025, life gets simpler. All assets – shares, funds, property – are taxed at the same rates: 18% for basic rate taxpayers and 24% for higher rate taxpayers. No more splitting by asset type or by date within the year.

The AEA stays at £3,000, and Business Asset Disposal Relief increases from 10% to 14% (rising to 18% from April 2026).

If you're working out your capital gains for Self Assessment, our CGT calculator computes the gain on every disposal with the correct date, so you can see exactly which gains fall before and after 30 October. Upload your broker statements, review the disposal report, and split by date – the hard part is already done.

Sources

• Capital Gains Tax rates – GOV.UK
• Changes to the rates of Capital Gains Tax – GOV.UK
• Capital Gains Tax rates and allowances – GOV.UK