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Capital gains tax
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Capital gains tax annual exempt amount |
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Individuals etc. |
£9,200 |
+£400 |
£9,600 |
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Most trustees |
£4,600 |
+£200 |
£4,800 |
The capital gains tax (CGT) annual exempt amount is increased in line with statutory indexation to £9,600 for the tax year 2008-09 for individuals, personal representatives of deceased persons and trustees of certain settlements for the disabled. The annual exempt amount for most other trustees is increased to £4,800.
Every husband, wife, civil partner and child has his or her own £9,600 annual exempt amount.
For gains above the annual exempt amount, the CGT rate for 2008-09 will be 18 per cent. In addition, a new entrepreneurs' relief will reduce the effective tax rate on some gains to 10 per cent.
The amount chargeable to CGT is added to the individual's income liable to income tax and treated as the top part of that total.
Rates etc
For 2000-01 onwards, capital gains tax rates are 10% where gains added to
total income are below the starting rate limit, 20% where they are below the
basic rate limit, and 40% where they exceed the basic rate limit.
From 6 April 1998, gains of all trusts and personal representatives are
taxed at 34%.