Tax Rates for Capital Gains Tax Year 2025

The government has proposed significant changes to capital gains tax (CGT) in the Finance Act 2024, impacting both immovable property and securities. Here’s a breakdown of the key proposals:

Immovable Property (Land & Buildings):

  • Flat Rate of 15%: A simplified system proposes a flat 15% tax rate on capital gains from immovable property acquired on or after July 1, 2024, for individuals listed on the Active Taxpayers List (ATL) at the time of disposal. Holding period will no longer be a factor.
  • No Change for Existing Properties: Properties acquired before July 1, 2024, will continue to be taxed under the existing regime, with varying rates based on holding period and property type.
S.NoHolding PeriodOpen PlotsConstructed PropertyFlats
1≤ 1 year15%15%15%
2> 1 year ≤ 2 years12.50%10%7.50%
3> 2 years ≤ 3 years10%7.50%0
4> 3 years ≤ 4 years7.50%5%
5> 4 years ≤ 5 years5%0
6> 5 years ≤ 6 years2.50%
7> 6 years0%

Securities (Stocks & Shares):

  • New Tax Brackets: Capital gains on securities acquired on or after July 1, 2024, will be taxed differently based on your ATL status.
    • ATL Individuals & AOPs: The higher of 15% or the existing slab rates (based on holding period) will apply.
    • Non-ATL Individuals & AOPs: A flat rate of 15% will be levied on capital gains.
    • Companies: The existing corporate tax rate will continue to apply.
  • Existing Holdings Remain Unchanged: Securities acquired between July 1, 2022, and June 30, 2024, will still be taxed based on the current holding period brackets (15% to 0%).
Holding PeriodRate
Less than 1 year15%
1 year to 2 years12.50%
2 years to 3 years10%
3 years to 4 years7.50%
4 years to 5 years5%
5 years to 6 years2.50%
More than 6 years0%
  • Pre-2013 Acquisitions Exempt: Securities acquired before July 1, 2013, remain exempt from capital gains tax.

What You Need to Do:

  • Stay Informed: Investors are advised to closely monitor the finalization of these proposals and seek professional advice to understand the potential impact on their investment strategies.
  • Review Acquisitions: Identify the acquisition dates of your immovable property and securities to determine which tax regime applies.
  • ATL Status: If you’re not already on the ATL, consider registering for potential tax benefits on future capital gains from securities.

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