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How to reduce capital gains tax after the Budget

CGT rates have increased. We look at options to mitigate the impact on your finances
How to reduce capital gains tax after the Budget Published on November 5, 2024
  • CGT rates increased with immediate effect, but the allowance remains the same
  • Take advantage of your Isa and pension allowances 
  • Consider gifting assets to your spouse and crystallising losses 

After weeks of speculation, Chancellor Rachel Reeves confirmed in the Autumn Budget that the government would be raising the rates of capital gains tax (CGT). Investors now face a heftier tax bill when they sell assets that sit outside of Isas and pensions, with basic-rate taxpayers hit by the steepest increases.  

However, the Budget granted a reprieve to landlords, as CGT rates on residential property remain the same. The £3,000 annual CGT allowance was also left untouched, after successive cuts under the previous government. 

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