--- title: "Autumn Budget 2021 Review: Capital Taxes" description: This week, the Chancellor of the Exchequer announced the 2021 Autumn Budget, the second of 2021. Here's how it will affect Capital Taxes. image: https://blog.shorts.uk.com/hubfs/New%20Project%20(14).jpg --- [![Shorts_logo_White](https://blog.shorts.uk.com/hubfs/New%20Site%202018/Shorts_logo_White.svg "Shorts_logo_White")](https://www.shorts.uk.com/) [Blogs & News](https://blog.shorts.uk.com/) > [Business Taxes](https://blog.shorts.uk.com/topic/business-taxes) # Autumn Budget 2021 Review: Capital Taxes David Robinson - 28 October 2021 ###### Select topic - Please Select - [ Audit ](https://blog.shorts.uk.com/topic/audit) [ Business Taxes ](https://blog.shorts.uk.com/topic/business-taxes) [ Radius – R&D Tax Relief & Patent Box ](https://blog.shorts.uk.com/topic/radius-rd-tax-relief-patent-box) [ Corporate Finance ](https://blog.shorts.uk.com/topic/corporate-finance) [ GENUS Management Accounts ](https://blog.shorts.uk.com/topic/genus-management-accounts) [ VAT ](https://blog.shorts.uk.com/topic/vat) [ Private Client ](https://blog.shorts.uk.com/topic/private-client) [ Payroll ](https://blog.shorts.uk.com/topic/payroll) [ EOT ](https://blog.shorts.uk.com/topic/eot) [ International Taxes ](https://blog.shorts.uk.com/topic/international-taxes) ![featured image](https://blog.shorts.uk.com/hubfs/New%20Project%20(14).jpg) The Chancellor, Rishi Sunak, has delivered his second Budget of 2021. Setting the tone for his “new age of optimism”, the Budget had a number of giveaways but contained very little in the way of changes to UK taxation. This article will take a closer look on how Capital Taxes will be affected. ## Capital gains tax (CGT) rates No changes to the current rates of CGT have been announced. This means that the rate remains at 10%, to the extent that any income tax basic rate band is available, and 20% thereafter. Higher rates of 18% and 28% apply for certain gains, mainly chargeable gains on residential properties, with the exception of any element that qualifies for Private Residence Relief. There is still potential to qualify for a 10% rate, regardless of available income tax basic rate band, up to a lifetime limit for each individual. This is where specific types of disposals qualify for: - **Business Asset Disposal Relief (BADR)**. This is targeted at directors and employees who own at least 5% of the ordinary share capital in the company, provided other minimum criteria are also met. It can also apply to owners of unincorporated businesses. - **Investors’ Relief**. The main beneficiaries of this relief are investors in unquoted trading companies who have newly-subscribed shares but are not employees. Current lifetime limits are £1 million for BADR and £10 million for Investors’ Relief. ## CGT annual exemption The CGT annual exemption will be maintained at the current level of £12,300 for 2022/23 and up to and including 2025/26. ## CGT reporting and payment following a property disposal UK resident individuals who dispose of UK residential property are sometimes required to deliver a CGT return to HMRC and make a payment on account of CGT within 30 days of completion of the property disposal. Broadly, this only applies where the property disposal gives rise to a CGT liability and as such usually excludes the disposal of a property to which private residence relief applies. Non-UK residents are subject to similar deadlines in respect of the disposal of all types of UK land and property. In both cases, for disposals that complete on or after 27 October 2021, the reporting and payment deadline is extended to 60 days following the completion of the disposal. From the same date, changes will clarify that for UK residents disposing of a mixed use property, only the portion of the gain that is the residential property gain is required to be reported and paid. ## Inheritance tax (IHT) nil rate bands The nil rate band has been frozen at £325,000 since 2009 and this will now continue up to 5 April 2026. An additional nil rate band, called the ‘residence nil rate band’ (RNRB) is also frozen at the current £175,000 level until 5 April 2026. A taper reduces the amount of the RNRB by £1 for every £2 that the ‘net’ value of the death estate is more than £2 million. Net value is after deducting permitted liabilities but before exemptions and reliefs. This taper will also be maintained at the current level. ### Read more about the 2021 Autumn Budget - [Autumn 2021 Budget Review: Business Tax](https://blog.shorts.uk.com/autumn-budget-2021-review-business-tax) - [Autumn 2021 Budget Review: Personal Tax](https://blog.shorts.uk.com/autumn-2021-budget-review-personal-tax) - [Autumn 2021 Budget Review: Other Taxes](https://blog.shorts.uk.com/autumn-budget-2021-review-other-tax-matters) - [Autumn 2021 Budget Review: Business Rates](https://blog.shorts.uk.com/autumn-2021-budget-review-business-rates) ![author](https://blog.shorts.uk.com/hubfs/Team%20profile%20round%20images/David%20Robinson%20Round%20circle.jpg) #### David Robinson As a Tax Partner, I advise clients on all aspects of UK tax, ranging from business taxes, transactions and private client matters, helping to achieve the objectives and aspirations of businesses and their owners. [View my articles](https://blog.shorts.uk.com/author/david-robinson) Tags: [Business Taxes](https://blog.shorts.uk.com/topic/business-taxes) Share this on - - - [Questions? Get in touch with us](https://www.shorts.uk.com/contact/) ###### Tax Saving Guide 2026-27 Written especially for entrepreneurs and owner-managed businesses, this guide is full of planning ideas and tax risks to avoid. [ Download now ](https://info.shorts.uk.com/en-gb/tax-saving-guide) ![Tax saving guide 2026-27](https://blog.shorts.uk.com/hs-fs/hubfs/Tax%20saving%20guide%202024.jpg?width=375&height=465&name=Tax%20saving%20guide%202024.jpg) ###### Related articles ##### [Autumn 2021 Budget Review: Business Rates](https://blog.shorts.uk.com/autumn-2021-budget-review-business-rates) ##### [Autumn Budget 2021 Review: Other Tax Matters](https://blog.shorts.uk.com/autumn-budget-2021-review-other-tax-matters) ##### [Autumn 2021 Budget Review: Personal Tax](https://blog.shorts.uk.com/autumn-2021-budget-review-personal-tax) ##### [Autumn Budget 2021 Review: Business Tax](https://blog.shorts.uk.com/autumn-budget-2021-review-business-tax) ###### Latest articles [A case of aggressive tax avoidance: Glasgow Rangers Football Club](https://blog.shorts.uk.com/aggressive-tax-avoidance-affect-you) [What is VAT? - Complete Guide (Updated for 2025/26)](https://blog.shorts.uk.com/what-is-vat) [Ashgate Hospice Sparkle Night Walk 2026](https://blog.shorts.uk.com/ashgate-hospice-sparkle-night-walk-2026) [Stocktaking guide for UK businesses](https://blog.shorts.uk.com/stocktaking-guide-for-uk-businesses) [Supporting the Chatsworth Cascade for future generations](https://blog.shorts.uk.com/supporting-the-chatsworth-cascade-for-future-generations) [Deal of the Year win at Insider Dealmakers Awards 2026](https://blog.shorts.uk.com/deal-of-the-year-win-at-insider-dealmakers-awards-2026) [Football shirt Wednesday: Backing England in style](https://blog.shorts.uk.com/football-shirt-wednesday-backing-england-in-style) [Understanding lifetime trusts: the basics](https://blog.shorts.uk.com/understanding-lifetime-trusts-the-basics) [Close company directors face new HMRC detail requirements in 2026](https://blog.shorts.uk.com/close-company-directors-face-new-hmrc-detail-requirements-in-2026) [Shorts advise Harris Irwin Architects on successful growth funding.](https://blog.shorts.uk.com/shorts-advise-harris-irwin-architects-on-successful-growth-funding) #### About Us Use this little footer to reinforce your message about who you are and why people love working with you. 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