Ndubuisi 'Andy' EgwimMoney Coach for Medics|Ex-NHS GP|21+ Yrs Investor| Founder, MoneyWiseDoctor.com|Helping Medics Avoid Big Money Mistakes

Big Changes to Capital Gains Tax!

14 Oct 2024 · 1 min

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A short YouTube commentary by Ndubuisi 'Andy' Egwim explaining what Capital Gains Tax (CGT) is, current UK CGT rates for basic- and higher-rate taxpayers on general assets and residential property, and recent political hints that Labour may raise CGT to align with income tax (discussed as possibly around 39–40%). The speaker defines CGT as tax on profit from selling assets (e.g., property, stocks) and contrasts existing rates with the proposed alignment.

Questions this video answers

A tax you pay on the profit from selling an asset (e.g., property or stocks).

10% on general assets and 18% on residential property.

20% on general assets and 24% on residential property.

Aligning CGT with income tax around 39–40%.

Chapters

Now let's go straight for number one, capital gains tax increases. So capital gains tax or cgt, there's a potential that they could be rising. If you don't already know, CGT is a tax you pay on the profit from selling an asset. For instance, if you sell a property or stocks and you make money, you pay CGT. Currently, basic rate taxpayers pay 10% on assets they sell or 18% on residential property, while higher rate taxpayers pay 20% or 24% when they sell residential property. However, labor has hinted that they might increase CGT rate to align with income tax. So we're talking 40%. So potentially if CGT could go up to as high as 39%.