Budget 2005

Capital gains tax

Rates

• individuals charged at 10%, 20% or 40% depending on their marginal rate of tax
• all trusts charged at 40%

* Reduced pro-rata if more than one trust per settlor subject to minimum of 10% of full amount

Indexation allowance

• frozen after April 1998 for individuals and trusts
• not available for assets acquired by individuals and trusts after 31 March 1998

Losses

Relief available for

• capital losses of the same tax year and those brought forward
• trading losses of same and following tax year

Taper relief

Gains on business assets*

Gains on non-business assets

* The definition of business assets is complex and advice should be sought on asset classification

† Assets held on 17 March 1998 are deemed to have been held for one year at 5 April 1998 for the purposes of this relief

The figures shown here are subject to ammendment as the Finance Bill passes through Parliament.

This information has been prepared only as a topical guide to tax and personal financial matters. No responsibility can be accepted by us for loss occasioned to any person acting or refraining from acting as a result of any material contained in this publication.