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

  1. Transfers between husband and wife or civil partners living together are generally exempt.
  2. 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.

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