Tax Planning
How the New Capital Gains Tax Rates Affect UK Investors and Entrepreneurs
Recent changes to the UK’s Capital Gains Tax (CGT) rates mean steeper tax liabilities for many, especially with Business Asset Disposal Relief and Investors’ Relief being phased up in upcoming years.
By NomadicTax Research Team • 5-8 min read • November 24, 2025
## Overview of New CGT Rates
In Autumn Budget 2024, the UK government introduced significant changes to Capital Gains Tax rates. For disposals of assets (excluding residential property and carried interest), the basic rate rose from **10% to 18%**, and the higher rate moved from **20% to 24%**, for disposals made **on or after 30 October 2024**.([gov.uk](https://www.gov.uk/government/publications/changes-to-the-rates-of-capital-gains-tax/1cf25453-5b0c-4e7b-9165-65cf117e0af0?utm_source=openai))
## Business Asset Disposal Relief and Investors’ Relief Phasing
Investors Relief (IR) and Business Asset Disposal Relief (BADR) are undergoing phased increases. From **6 April 2025**, these reliefs move from **10% to 14%**, and climb again to **18%** from **6 April 2026**.([gov.uk](https://www.gov.uk/government/publications/capital-gains-tax-investors-relief-lifetime-limit-reduction/capital-gains-tax-investors-relief-reduction-in-the-lifetime-limit?utm_source=openai)) In addition, the **lifetime limit** for Investors’ Relief has dropped from **£10 million to £1 million**, effective from **30 October 2024**.([gov.uk](https://www.gov.uk/government/publications/capital-gains-tax-investors-relief-lifetime-limit-reduction/capital-gains-tax-investors-relief-reduction-in-the-lifetime-limit?utm_source=openai))
## Practical Implications and Examples
- **Example A**: Jane, a higher-rate taxpayer, sells shares making a gain of £100,000 in December 2024. She’d pay 24% on most of that gain (excluding any residential property or carry interest) instead of the previous 20%, costing her an extra £4,000.
- **Example B**: Peter qualifies for Investors’ Relief. Prior to 30 October 2024 his cap was £10 million, but from that date forward it applies to a lifetime limit of only £1 million. If gains claimed so far exceed £1 million, he may lose out on relief for future gains.
## Actionable Strategies for Planning
- **Ahead of deadline moves**: If you're planning a disposal that qualifies under BADR or IR, consider accelerating before 6 April 2025 or 6 April 2026, depending on your relief type.
- **Review your portfolio split**: Gains from residential property remain at current CGT rates and aren’t subject to these particular increases; consider how your assets are structured.
- **Track disposal dates carefully**: Because the rates switched on 30 October 2024 for many assets, intra-tax-year record keeping has become more complex. HMRC tools and guidance are essential.
## Key Takeaways
- Rates on many non-property assets are now significantly higher; reliefs are being made more restrictive.
- BADR and IR are still available but with increased rates and reduced caps.
- Timing and planning are more important than ever to minimize CGT liabilities.