Is Capital Gains Tax Changing Again?
Is Capital Gains Tax changing? See what’s confirmed, what’s next, and 3 smart ways to prepare before the Autumn Budget 2025.
With the Autumn Budget 2025 approaching, many are asking: is Capital Gains Tax changing again? The answer is yes — and some of these changes are already locked in. Rates are moving, reliefs are tightening, and April 2026 could see one of the steepest increases in years. The good news? You still have time to plan ahead and protect your wealth.
But here’s the good news — you still have time to make smart moves that could save you thousands. The key is understanding what’s confirmed and what might be next so you can plan ahead with confidence.
Let’s break it down.
The Road Ahead: Key CGT Changes You Can Bank On
These aren’t rumours — they’re already in HMRC’s rulebook:
| Type of Gain / Relief | Now (Aug 2025) | From 6 Apr 2026 | Notes |
|---|---|---|---|
| Most assets (shares, funds, business assets not qualifying for reliefs) | Basic rate: 18% Higher/additional rate: 24% | No change announced | Applies to gains above the annual exempt amount |
| Residential property (not covered by Private Residence Relief) | Basic rate: 18% Higher/additional rate: 24% | No change announced | 60-day reporting and payment rules apply |
| Carried interest | 32% (all taxpayers) | No change announced | Applies to certain fund managers |
| Business Asset Disposal Relief (BADR) | 14% | 18% | Increased from 10% in Apr 2025; further rise confirmed for Apr 2026 |
| Investors’ Relief | 14% | 18% | Same step-up timetable as BADR |
| Annual Exempt Amount (AEA) | £3,000 (individuals)£1,500 (most trusts) | No change announced | Reduced from £6,000 in Apr 2024 |
These confirmed updates mean that Capital Gains Tax changing is no longer speculation, it’s a reality every taxpayer should plan for. Put simply — each tax year that passes could see your bill rise if you delay certain disposals.
Why it matters: If you qualify for BADR or Investors’ Relief, waiting until after April 2026 could cost you thousands more. For example, selling a business with £500,000 of gains qualifying for BADR would mean paying £70,000 in CGT this year, but £90,000 from April 2026 — a £20,000 difference.
What’s Around the Corner?
With the Treasury reviewing capital taxes, we could see Capital Gains Tax changing again sooner than expected in this year’s UK Autumn Budget.
The Office for Budget Responsibility (OBR) has highlighted that CGT receipts fell slightly in 2023-24 after two years of unusually high-value disposals. CGT receipts then rose temporarily in 2025-26 due to people bringing forward asset disposals in advance of anticipated rate rises. (OBR tax forecast analysis).
In August 2025, several national news outlets reported that the Treasury is considering changes to Inheritance Tax (IHT) alongside possible tweaks to CGT to help plug the UK’s budget deficit.
Nothing is confirmed yet, but the overall trend is clear: capital taxes remain firmly in the government’s sights.
If you want to understand how IHT reforms could interact with CGT changes, our Succession Planning specialists can guide you.
Three Smart Moves You Can Make Now
These steps are practical, fully within the rules, and can be started today.
1. Time Your Disposals
If you’re planning to sell shares, a business, or property, think carefully about the tax year. Spreading disposals over two tax years means you can use multiple annual exempt amounts. Spouses and civil partners can also transfer assets between them tax-free to double allowances.
For business owners, selling before April 2026 could mean keeping tens of thousands of pounds more in your own pocket. Even with anti-forestalling rules in place, there are legitimate ways to secure the lower rates (HMRC anti-forestalling detail).
If a sale is on your horizon, our Business Disposals team can help you plan tax-efficient timing.
2. Make the Most of Wrappers and Reliefs
Use ISAs, pensions, and approved investment schemes to shelter gains from CGT.
Property owners should consider Private Residence Relief where eligible — but remember, there’s now a 60-day reporting deadline for UK residential property sales (HMRC property reporting rules).
For tailored property tax advice, see our Property Tax Planning for Investors.
3. Harvest Your Losses
If some investments have fallen in value, you can sell them to crystallise a loss and offset it against gains — either this year or in future years. This “loss harvesting” can significantly reduce your CGT liability over time.
Our Tax Compliance & Planning service can help you record, claim, and carry forward losses effectively.
Scenario Snapshots: Why Acting Early Matters
Imagine selling your business for £1 million, with £500,000 qualifying for BADR:
| Timing | BADR Rate | Tax on £500k |
|---|---|---|
| Before April 2025 | 10% | £50,000 |
| After April 2025 | 14% | £70,000 |
| After April 2026 | 18% | £90,000 |
Waiting until after April 2026 could cost an extra £40,000 — enough to fund a property deposit, pay for expansion plans, or add to your retirement pot.
Your Next Step
The rules are tightening. But with the Autumn Budget 2025 still ahead, there’s a clear opportunity to act now and protect your position.
Whether you’re selling a business, disposing of property, or restructuring your investments ahead of the UK Budget 2025, acting before more changes are announced could make all the difference.
If you want to avoid paying more, the time to act on capital gains tax changing is now. Contact Nichols & Co today to book your CGT planning review.
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Disclaimer: This article is for general information only and is not personal tax advice. Always check the latest HMRC CGT guidance and consult a qualified advisor before making decisions.
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