Capital Gains Tax
| Capital gains tax rates and bands are as follows: |
| |
2008/09 |
2007/08 |
| On chargeable gains |
18% |
Taxed as top slice of savings income |
| 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 |
£6,000 |
|
Entrepreneurs' Relief
This relief will reduce the chargeable gain on qualifying assets by 4/9,
resulting in an effective rate of 10%. An individual will be able to make
claims for disposals on or after 6 April 2008. Claims may be made on more than
one occasion, up to a "lifetime" total of £ 1 million of gains.
Notes
- Transfers between husband and wife or civil partners living together are generally exempt.
- Capital gains of all trusts for 2008/09 are taxed at the standard rate of 18% (2007/08 special rate for trusts 40%). Where there are several trusts created by the same settlor, the annual exemption is divided equally between them, subject to a minimum exemption of £960 (2007/08 £920) for each trust.