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.
