Capital Gain Tax

Capital Gains Tax

Capital gains tax rates and bands are as follows:   2009/10 2008/09 On chargeable gains 18% 18% Annual exemption     - individual £10,100 £9,600 - settlement(s) (spread over total number) £5,050 £4,800   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

1. Transfers between husband and wife or civil partners living together are generally exempt.
2. Capital gains of all trusts for 2009/10 are taxed at the standard rate of 18%. Where there are several trusts created by the same settlor, the annual exemption is divided equally between them, subject to a minimum exemption of £1,010 (2008/09 £960) for each trust.

Advertisement