As expected, and with immediate effect from the budget date of 30 October 2024, the rates of capital gains tax (CGT) have been increased on some asset types as follows:

	2025/26	2024/25
Annual exempt amount	£3,000	£3,000
		From 30 October 2024	Prior to 30 October 2024
Rate of CGT on assets other than residential property and qualifying business disposals:
Within the basic rate band	18%	18%	10%
Outside the basic rate band	24%	24%	20%
Rate of CGT on residential property disposals:
Within the basic rate band	18%	18%	18%
Outside the basic rate band	24%	24%	24%
Rate of CGT on qualifying business disposals:
Business Asset Disposal Relief (BADR) lifetime limit	£1million	£1million
Rate of CGT on gains qualifying for BADR	14%	10%	10%

Entrepreneurs will be pleased to learn that Business Asset Disposal Relief (BADR) will continue to apply when they dispose of their business. However, the rate of CGT on BADR qualifying disposals is increasing from 10% to 14% for disposals made on or after 6 April 2025, and from 14% to 18% for disposals made on or after 6 April 2026.  These rates apply to the first £1 million of qualifying disposals.