What is the tax rate for higher rate taxpayers on capital gains?

The tax rate for higher rate taxpayers on capital gains is indeed 20%. This rate applies to individuals whose income places them in the higher tax bracket above the basic rate threshold. For gains realized above the annual exempt amount, higher rate taxpayers are subject to this specific rate, which is designed to reflect the higher level of income.

It's important to note that there are different capital gains tax rates that apply depending on the taxpayer's overall income and the type of asset sold. Basic rate taxpayers pay a lower rate, while certain residential property gains might be taxed at a higher rate of 28%. However, as it pertains specifically to higher rate taxpayers, the correct rate is established at 20% for most gains. Understanding this rate is crucial for individuals planning their investment strategies and tax liabilities.