Date posted: 4th Sep 2025
From 30 October 2024, the main rates of Capital Gains Tax (CGT) on disposals of assets (other than residential property and carried interest) increased:
- For basic rate taxpayers: from 10% to 18%
- For higher rate taxpayers: from 20% to 24%
What Does This Mean for You?
- If you made a disposal of relevant assets on or after 30 October 2024 and you are completing your 2024/25 Self Assessment tax return, you need to be aware of these changes.
- The HMRC online Self Assessment tax return system may not automatically apply the new, higher CGT rates when calculating your liability. You may need to make a manual adjustment to ensure you pay the correct amount.
HMRC Action
- HMRC is contacting taxpayers whose 2024/25 returns declare asset disposals after 30 October 2024 and where an incorrect CGT rate may have been used.
- You could receive a letter if:
- You adjusted your return for the CGT rate change, but the adjustment seems incorrect.
- You made no adjustment and seem to have used the old (lower) CGT rates.
What Should You Do If Contacted?
- Act within 30 days of receiving any HMRC letter.
- Check your CGT calculation.
- If your return is incorrect, amend it.
- If you believe your return is already correct, inform HMRC using the details in their letter.
Potential Consequences
- Interest may be charged on any underpaid CGT.
- If you do not act by the deadline, HMRC may amend your return, open an enquiry, and penalties could be charged for inaccuracies.
Key Reminders:
- The rate change does not affect disposals of residential property or carried interest.
- Ensure you follow up promptly with any HMRC correspondence to avoid additional charges.
- If you have any questions, please contact us for professional advice and support.
If you need help checking your return, understanding the new CGT rules, or responding to an HMRC letter, get in touch with our team – we’re here to help ensure your tax affairs are correct and fully compliant.
