You have likely seen over the past year or so that the Capital Gains Tax (CGT) regime has changed considerably.

Indeed, the main rates of CGT were revised at the Autumn Budget in October 2024, with the changes coming into effect immediately. Now, in most cases, you can expect to pay:

• 18% as a basic-rate taxpayer
• 24% as a higher-rate taxpayer. 

This brings the rates in line with those charged on residential properties that aren’t your main home.

Meanwhile, the Annual Exempt Amount – which allows you to realise a certain amount of profit before incurring CGT each tax year – has seen several reductions. It fell from £12,300 to £6,000 in April 2023, then again to £3,000 in April 2024. 

The government website states that the latter of these changes brought an additional 87,000 taxpayers into the scope of CGT for 2023/24.

Now, with the 2025 Autumn Budget fast approaching, speculation has arisen about whether the chancellor will increase CGT rates further.

Regardless of what happens, it might still be prudent to assess some of the ways you can mitigate a potential CGT bill. 

Continue reading to discover three ways of doing so.

1. Transfer assets between spouses or civil partners

One of the more straightforward ways to mitigate your CGT liability is by transferring assets between yourself and your spouse or civil partner. 

The CGT Annual Exempt Amount is an individual exemption, meaning you could essentially double your tax-free threshold to £6,000 before becoming liable for tax.

You can usually transfer assets between you and your spouse without incurring tax. As such, you could strategically share investments and other assets to realise more tax-free profits when you sell them.

Doing so could be particularly beneficial if your partner is in a lower tax band, as their gains are typically taxed at a lower rate. 

Read more: 3 surprising benefits of planning for retirement with your partner 

It’s vital to remember that if you employ this strategy and later decide to sell the asset, you may be liable for tax based on the asset’s value when your partner purchased it, not when you transferred it to them.

2. Consider using tax-efficient savings and investment accounts

If you believe you’ll end up selling some of your investments or assets in 2026, it might be wise to fully utilise your Individual Savings Account (ISAs) allowance. 

Any profits you earn from investments in a Stocks and Shares ISA typically aren’t subject to Income Tax, Dividend Tax, or CGT. This allows you to invest your wealth without worrying about a considerable tax bill. 

The ISA allowance stands at £20,000 as of 2025/26, a significant sum of money you could invest for potential growth, while minimising a CGT bill. 

While investment returns are never guaranteed, this strategic use of your ISA could still be a practical way to manage your tax liability.

3. Offset your gains with losses

It’s common to only focus on gains when you think about CGT. However, losses can also help you manage a potential tax bill.

For instance, if you sell a chargeable asset for less than you paid for it, this might make it an allowable capital loss. You may then be able to offset it against your other gains, reducing the amount of wealth that is subject to CGT.

Consider this example:

• You sell shares in a company outside of your ISA and make a profit of £8,000.
• With the Annual Exempt Amount of £3,000, you would usually be liable to pay CGT on the remaining £5,000.
• As a higher-rate taxpayer, this would mean the CGT you owe would be 24% of £5,000, equating to £1,200.
• If you later sold another asset and made a £3,000 loss, you could offset this against your earlier gain. 
• This would effectively reduce your total taxable gain to £2,000, meaning you would only pay £480 in CGT.

It’s worth pointing out that if you have any unused losses after setting them against gains in the current year, you can typically carry them forward and use them against future gains.

Indeed, you can use the past four years’ worth of unused losses to further minimise your tax liability.

However, you must first offset allowable capital losses against any gains you make in the same tax year. 

This is why it’s so important to report any losses to HMRC, even if they don’t immediately reduce your tax bill. 

Get in touch

We could help you manage your tax liability to ensure you make the most of your hard-earned wealth.

Please contact us now to find out how our Chartered financial planners can support you. 

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. 

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

The Financial Conduct Authority does not regulate tax planning.