Capital Gains Tax
|
Capital gains tax rates
and bands are as follows: |
| |
2007/08 |
2006/07 |
|
Taxed as top
slice of savings income |
|
|
|
Annual
exemption |
|
|
|
- individual |
£9,200 |
£8,800 |
|
-
settlement(s) (spread over total number) |
£4,600 |
£4,400 |
|
Transfers between husband and wife living together are
exempt |
| |
|
Chattels
exemption |
|
|
|
(proceeds
per item or set) |
£6,000 |
£6,000 |
|
Taper Relief
For gains realised after 5 April 1998 by individuals or trustees, indexation
allowance is frozen and the gain reduced by a tapering relief. The value of the
taper relief depends on whether or not the asset is a business asset, and on the
number of complete years the asset has been held after 5 April 1998 (with an
additional "bonus" year for non-business assets held on 16 March 1998).
|
Non-Business Assets |
No. of
complete years
held after 5 April 1998 |
% gain
chargeable |
|
1 |
100 |
|
2 |
100 |
|
3 |
95 |
|
4 |
90 |
|
5 |
85 |
|
6 |
80 |
|
7 |
75 |
|
8 |
70 |
|
9 |
65 |
|
10 or more |
60 |
|
|
Business Assets |
No of
complete years
held |
% of gain
chargeable |
|
0 |
100 |
|
1 |
50 |
|
2 or more |
25 |
|
Notes
- Transfers between husband and wife or civil partners living together are
exempt.
- Capital gains are regarded as the top slice of savings income. Rates of 10%,
20% and 40% will therefore apply to gains taxed on individuals, as appropriate.
- Capital gains of all trusts are taxed at the special trust rate of 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 £920 (2006/07
£880) for each trust.
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