Threads / Capital Gains Tax Reform / Reducing the annual exempt amount for Capital Gains Tax
Policy Paper Published 21 Nov 2022 HM Revenue & Customs ↗ View on GOV.UK

Reducing the annual exempt amount for Capital Gains Tax

This tax information and impact note is about reducing the Capital Gains Tax annual exempt amount.

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This measure changes the Capital Gains Tax (CGT) annual exempt amount (AEA).

For the tax year 2023 to 2024 the AEA will be £6,000 for individuals and personal representatives, and £3,000 for most trustees.

For the tax year 2024 to 2025 and subsequent tax years the AEA will be permanently fixed at £3,000 for individuals and personal representatives, and £1,500 for most trustees.

The measure also fixes the CGT proceeds reporting limit at £50,000.