F2Part 1Capital gains tax and corporation tax on chargeable gains
Chapter 1Capital gains tax
Rates of CGT
1HThe main rates of CGT
1
This section makes provision about the rates at which capital gains tax is charged but has effect subject to—
a
section 169N (F1business asset disposal relief: rate of 10%), and
b
section 169VC (investors' relief: rate of 10%).
2
Chargeable gains accruing in a tax year to an individual that are—
a
residential property gains (see Schedule 1B), or
b
carried interest gains (see subsections (9) to (11)),
are charged to capital gains tax at a rate of 18% or 28%.
3
Other chargeable gains accruing in a tax year to an individual are charged to capital gains tax at a rate of 10% or 20%.
4
The question as to which of the rates applies to the gains concerned is determined by section 1I (income taxed at higher rates or gains exceeding unused basic rate band).
5
Chargeable gains accruing in a tax year to the personal representatives of a deceased individual that are—
a
residential property gains, or
b
carried interest gains,
are charged to capital gains tax at a rate of 28%.
6
Other chargeable gains accruing in a tax year to the personal representatives of a deceased individual are charged to capital gains tax at a rate of 20%.
7
Residential property gains accruing in a tax year to the trustees of a settlement are charged to capital gains tax at a rate of 28%.
8
Other chargeable gains accruing in a tax year to the trustees of a settlement are charged to capital gains tax at a rate of 20%.
9
For the purposes of this section chargeable gains are “carried interest gains” if they accrue to an individual (“X”)—
a
under section 103KA(2) or (3) (investment management services), F3...
b
as a result of carried interest arising to X under arrangements not involving a partnership under which X performs investment management services directly or indirectly in respect of an investment scheme.
10
A gain is not a carried interest gain under subsection (9)(b) if the carried interest constitutes a co-investment repayment or return.
11
Expressions used in subsection (9) or (10) have the same meaning as they have in Chapter 5 of Part 3.
Pt. 1 substituted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 2