Capital Gains Tax
| Capital gains tax rates and bands are as follows: |
| |
2008/09 |
2007/08 |
| Standard rate |
18% |
n/a |
| Taxed as top slice of savings income |
n/a |
20/40% |
| Entrepreneurs' relief - effective rate |
10% |
n/a |
| Annual exemption |
|
|
| - individual |
£9,600 |
£9,200 |
| - settlement(s) (spread over total number) |
£4,800 |
£4,600 |
| Chattels exemption |
| (proceeds per item or set) |
£6,000 |
| Marginal relief |
5/3 excess over £6,000 |
| Entrepreneurs' relief 2 (from 6 April 2008) |
£1 million |
Notes
- Transfers between spouses and civil partners living together are exempt.
- Entrepreneurs' relief is available in respect of gains made on the disposal of all or part of a business, or gains made on disposals of assets following the cessation of a business or gains by certain individuals who were involved in running the business. The first £1 million of gains that qualify will be charged to CGT at an effective rate of 10%. Gains in excess of £1 million will be charged at the normal rate of 18%. An individual will be able to make claims for relief on more than one occasion, up to a lifetime total of £1 million of gains qualifying for relief.
Did you know?
That the Government expect to increase the tax yield from capital gains tax by £200 million. The estimate for the current year of tax receipts is £5 billion.
