There are numerous Capital Gains tax (CGT) reliefs in the UK: this guide outlines which of the key reliefs applies when and where.

All references are the Taxation of Chargeable Gains Act 1992 (TCGA).

Click on the relief type for further guidance. Where a relief is available to an individual it is generally available to the trustees of a settlement, there are some exceptions, please see the detailed guide to each relief for more information.

Type of relief Gains on which type of asset Who When Section


Entrepreneurs' Relief
A business and business assets, where business is a trade, profession or vocation, covering:
  • A disposal of a business or part of a business 
  • A disposal of the assets of a business following its cessation.
Exclusions: no relief for disposals of goodwill on incorporation from 3/12/2014
Individual: sole trader or partner Claimed on tax return. Normal time limit within 12 months of filing deadline. See Time limits S169h to 169V
A disposal of the shares or securities of an individual's personal company. Individual: employee or officer  
A disposal of trust business assets. Trustees and beneficiary  

  • A disposal of business assets associated with disposal of an interest in a partnership or shares in a company.
Individual: partner, or  employee/officer   
Investor Relief

A disposal of shares acquired by subscription

Individual: not an employee or officer on subscription

S169VA
Roll over (replacement of business assets)

Assets used for the purposes of a trade or a deemed trade including:

  • A building or any part of a building and any permanent or semi-permanent structure in the nature of a building occupied (as well as used) for the purpose of a trade. "Trade" includes a qualifying furnished holiday lettings business.
  • Any land occupied (as well as used) for the purposes of a trade.
  • Fixed plant or machinery which does not form part of a building or of a permanent or semi-permanent structure in the nature of a building.
  • Ships, aircraft, hovercraft.
  • Goodwill
  • Space stations and space vehicles
  • Milk quotas and potato quotas
  • Ewe and suckler cow premium quotas
  • Fishing quotas

There are special rules for wasting assets (assets with a life of less than 50 years) which are normally exempt from CGT.

Roll-over does not apply in respect of the disposal of shares and securities.

Individuals & companies Claimed on tax return. Normal time limit within 12 months of filing deadline. See Time limits 152
Roll over (incorporation relief)

A business and its chargeable assets transferred to a company (no requirement for  there to be a trade)

  • Goodwill and intangible assets 
  • Land and property
Individuals  On incorporation 162
Disincorporation (roll over)

The goodwill and land and property in the transfer of a company's business (no requirement for it to be a trade ) to its shareholders

  • Goodwill
  • Land and property which is not held as trading stock
Company  On disincorporation 162B

Hold over (gift of business assets)

 

 

 

 

 

 

 

 

Hold over (gifts)

An asset or an interest in an asset used for the purposes of a trade, profession or vocation carried on by:

  • The donor as a sole trader or in partnership
  • The donor's personal company, or where his personal company is a holding company a member of its trading group.

Shares or securities in an unlisted personal company that is either a trading company or holding company of a trading group.

  • Personal company means a company where he holds at least 5% of the votes.

Transfers of agricultural property

Relief is available to the trustees of a settlement if they carry on the trade themselves or it is carried on by a beneficiary with a life interest in the trust

 

 

Gifts of assets that are immediately chargeable to IHT, or would be were it not for the IHT nil rate band these include:

  • Gifts into trusts (excluding settlor interested trusts)
  • Gifts that are IHT exempt, such as gifts of heritage property, works of art, gifts to political parties and transfers out of young person's settlements

 

Individuals Claimed on tax return. Normal time limit within 12 months of filing deadline. See Time limits

165

260

Private Residence Relief

Relief on the disposal of an individual's only or main private residence:

  • Land and property
  • Land restricted to a permitted area

Restrictions introduced from 6 April 2015 in respect of claims for relief by:

Individuals

On the disposal of an only or main residence.

Claimed on tax return. Normal time limit within 12 months of filing deadline. See Time limits

Two year time limit on second property election

s222