gov.uk lists 4 tax bands:

  • personal allowance
  • basic rate
  • higher rate
  • additional rate

On its capital gains tax rate page, it explains the rates for:

  • "higher or additional rate taxpayer"; and
  • "basic rate taxpayer"

However, no mention is made of people with no taxable income ("personal allowance" rate).

I would guess this class is treated as "basic rate taxpayer" but is this stated officially somewhere?

  • I think I would email or ring HMRC and ask them this directly, as it's such an unusual situation I would doubt you would find details anywhere official. Most people who have enough assets to be making capital gains less than the CGT threshold of £12,300 are very unlikely to have income less than the personal allowance of £12,570.
    – Vicky
    Jul 5, 2021 at 20:16
  • That said, the calculation for basic rate taxpayers on on the CGT page you link to works just as well if you have 0 income (just some of the intermediate numbers would be negative). So if all else fails I would use that.
    – Vicky
    Jul 5, 2021 at 20:17
  • "Basic rate tax payer" does not mean "you actually pay some income tax". That depends whether or not your taxable income exceeds your personal allowances. It just means "You don't pay any income tax at the higher rate.
    – alephzero
    Jul 6, 2021 at 16:32
  • @Vicky If you self-employed and your income comes from a one-man company, your "income" is pretty much whatever a competent accountant wants it to be. It doesn't correlate at all with your "spending ability".
    – alephzero
    Jul 6, 2021 at 16:35
  • 1
    @alephzero The first link states that there are 4 rates and 4 bands. Hence my question, now answered.
    – jhnc
    Jul 6, 2021 at 16:37

1 Answer 1


Follows the rules for basic rate taxpayer.

I have struggled to see this spelt out under normal Government web site.

What applies is actually specified in the Taxation of Chargeable Gains Act 1992 (as amended) under Part I section 1I subsection 2 which doesn't distinguish zero income, income within personal allowance and income within basic rate band. See legislation

  • Thanks, exactly the kind of link I wanted, but wow that's convoluted wording. :-/
    – jhnc
    Jul 5, 2021 at 20:37

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