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
- Transfers between husband and wife or civil partners living together are generally exempt.
- 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.
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