Capital Gains Tax Annual Exempt Amount Changes for 2023
Important Update for Taxpayers
Changes to the Capital Gains Tax Annual Exempt Amount (AEA)
The government has announced a change to the Capital Gains Tax (CGT) annual exempt amount (AEA) for the tax year 2023. The AEA is the amount of capital gains that individuals can earn in a tax year before they have to pay CGT. For the 2023 tax year, the AEA has been set at GBP 12,300.
This change means that taxpayers will now be able to make more capital gains before they trigger a CGT liability. The previous AEA for the 2022-23 tax year was GBP 6,000. The increase in the AEA is designed to help taxpayers who sell assets at a profit, such as stocks, property, or other investments.
It is important to note that the CGT AEA is a personal allowance, meaning that it is available to each individual taxpayer. This means that married couples or civil partners can each benefit from their own AEA. The AEA is also available to non-UK residents who sell UK assets.
If you are planning to sell an asset in the 2023 tax year, it is important to be aware of the revised CGT AEA. You can use this information to help you calculate your potential CGT liability and make informed decisions about your investments.
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