capital gains tax and inheritance tax rates
Capital Gains Tax and Inheritance Tax Rates
Capital Gains Tax
2022/23
2021/22
Annual Exempt Amount
£12,300
£12,300
Annual Exempt Amount for Trustees
£6,150
£6,150
Basic rate taxpayer
10%
10%
Higher rate taxpayer
20%
20%
Business asset disposals (first £1 million)
10%
10%
Basic rate taxpayer – residential property
18%
10%
Higher rate taxpayer
28%
28%
*Note that the Annual Exempt Amount is set to drop to £3,000 (£1,500 for Trustees) in 2024/25.
Inheritance Tax
Nil Rate Band
£325,000
£325,000
Residence Nil Rate Band
£175,000
£175,000
Taper threshold – Residence Nil Rate Band*
£2,000,000
£2,000,000
Estate rate
40%
40%
Chargeable lifetime transfers
20%
20%
* Residence Nil Rate reduced by £1 for every £2 that estate exceeds this amount.
Our Core Services
Bookkeeping
Stressed out with paperwork? Let Butterworths Accountants take it off your hands. Simply drop off your invoices, bank statements and records, and we will take care of all the processing for you.
Making Tax Digital for Income Tax
From 6 April 2026, the major change under Making Tax Digital (MTD) for Income Tax Self-Assessment (MTD for ITSA) comes into effect in the UK. This is a significant update to how certain self-employed individuals and landlords report their income to HMRC.
Business start-up
Starting a business is a really exciting time, but we know it is also a very busy time. You will no doubt have your plans in place and the drive to succeed, but you may not be aware of all the financial aspects involved.
Accounting
Butterworths can help reduce the time you spend on admin work, letting you focus on what is really important to your business.
VAT
Value Added Tax (VAT) is a tax that must be paid when purchasing services or goods. At Butterworths we can help you through the whole VAT process, including:
Payroll
Worried about a PAYE inspection? Butterworths Accountants’ PAYE Healthcheck service is designed to identify PAYE issues before HMRC does.
Tax
Need help with your tax return or want to pay less tax? Butterworths Accountants provide personal tax services for both business owners and private individuals.