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.
|
