Measure

Change to the rate of capital gains tax for residential property

The measure

The higher rate of capital gains tax for chargeable gains on the disposal of residential property will be reduced from 28% to 24%.

To the extent that gains fall within an individual’s basic rate band, the applicable tax rate will remain at 18%.

 

Who will be affected?

Individuals, trustees and personal representatives subject to UK taxation on the disposal of residential property.

 

When will the measure come into effect?

For disposals on or after 6 April 2024.

Our view

This measure will be welcomed by those who are realising gains on the disposal of residential property.

It is worth noting that the new 24% rate will mean that from 6 April 2024 there will be five rates of capital gains tax on assets (excluding residential property) - 10%, 18%, 20%, 24% and 28%.