What the Budget capital gains tax hike means for you: How small investors will be hit [Video]

Updated 16:42 EDT 30 Oct 2024

Rachel Reeves announced a hike to capital gains tax on small investors, raising the tax on stocks and shares to match the higher rates currently paid on property.

Setting out the new rules in her much-awaited Autumn Budget, Reeves said capital gains tax would be increased to 24 per cent from 20 per cent for those paying higher rates of tax.

But it was basic rate taxpayers who faced the biggest blow, as their capital gains tax rates will rocket from 10 per cent to 18 per cent.

We look at what capital gains tax is and what the changes mean for investors.

Capital gains tax, known as CGT, is levied on profits on assets including stocks and shares, second homes, buy-to-lets and some personal possessions.

There is an annual capital gains tax-free allowance of £3,000 …