Capital taxes

Capital gains tax (CGT) annual exempt amount

The annual exempt amount for individuals and personal representatives will remain at £12,300 until 5 April 2026, and the amount for most trustees will likewise remain at £6,150 (minimum £1,230).

Inheritance tax (IHT)

The IHT nil rate band will remain at £325,000 until 5 April 2026. The residence nil rate band (RNRB) will likewise stay at £175,000 and the RNRB taper will continue to apply where the value of the deceased’s estate is greater than £2 million.

Stamp duty land tax (SDLT) temporary rates

The temporary increase to £500,000 to the SDLT nil rate band for residential property in England and Northern Ireland is extended until 30 June 2021. From 1 July 2021 until 30 September 2021, the nil rate band will be £250,000 and will then return to £125,000.

Non-UK resident SDLT

As previously announced, there will be an SDLT surcharge on non-UK residents buying residential property in England and Northern Ireland from 1 April 2021. The surcharge will be 2% above the existing residential rates.

SDLT on slices of value (England & N Ireland)

Residential property

 

Commercial property

To 30/6/21

1/7/21 – 30/9/21

From 1/10/21

%

 

%

Up to £500,000

Up to £250,000

Up to £125,000

0

Up to £150,000

0

N/A

N/A

£125,000 – £250,000

2

£150,001 – £250,000

2

£500,000 – £925,000

£250,001 – £925,000

£250,001 – £925,000

5

Over £250,000

5

£925,001 – £1,500,000

10

 

 

Over £1,500,000

12

 

 

First time buyers: 0% on first £300,000 for properties up to £500,000 from 1/7/21
Non-resident purchasers: 2% surcharge on properties £40,000 or more
Residential properties bought by companies etc. over £500,000: 15% of total consideration, subject to certain exemptions


THINK AHEAD
CGT reform remains on the agenda. Now may be a good time to review whether to realise your gains before the tax regime becomes harsher.

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