Capital Gains Tax (CGT) key measures included in Budget 2021 are as follows:

Annual Exempt Amount

  • The CGT Annual Exempt Amount will remain at £12,300 for individuals and £6,150 for most Trusts until April 2026 

Relief for gifts of business assets anti-avoidance for non-residents

  • Section 167(2) TCGA 1992 disapplies Gift relief where a transferee company is controlled by a person who is not resident in the UK and is Connected with the person making the disposal.
  • For disposals on or after 6 April 2021, a new measure will ensure that this anti-avoidance rule applies where a non-UK resident person gifting the asset also controls the recipient company.

Venture Capital Schemes: Extension of the Social Investment Tax Relief (SITR)

  • The government will continue to support social enterprises in the UK that are seeking growth investment by extending the operation of SITR to April 2023.
  • This will continue the availability of Income Tax relief and Capital Gains Tax holdover relief for investors in qualifying social enterprises, helping them access patient capital.

Useful guides on this topic

Budget 2021: At a glance
A summary of key budget announcements together with items published without announcement.

Budget 2021: Subscriber guide
A detailed guide with links to more detail on all the key topics for SMEs and their owners.

CGT: Reliefs, disposal of a business or its assets
Which Capital Gains Tax (CGT) reliefs apply when a person, replaces or disposes of an asset used by a business, the whole or part of a business, or shares in a company.

How to calculate a capital gain or loss
This is a guide to how to compute a capital gain (or loss) for individuals and trustees.

Non-resident CGT: UK property
Capital Gains Tax, non-residents and UK property.

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