Kevin Read considers some of the effects of the CGT changes announced in the Autumn Budget 2024.
In the Autumn Budget on 30 October 2024, Rachel Reeves made some significant changes to capital gains tax (CGT). The main purpose of this article is to explain some of the knock-on consequences that were not outlined in the speech, but I will also remind you of the headline changes. I will refer to business asset disposal relief (BADR) throughout, even if referring to gains when it was called entrepreneurs’ relief.
The main rates of CGT
CGT for gains within the basic rate band increased from 10% to 18% for disposals on or after 30 October 2024; the rate for residential property gains and receipts of carried interest was already 18%.
The higher rate of CGT increased from 20% to 24% to align with residential property rates from the same date (except receipts of
