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Page 15 of 31
Budget 2004
Personal Taxation
Capital Gains Tax
Rates
- individuals charged at 10%, 20% or 40% depending on their marginal rate of tax
- all trusts charged at 40% (34% 2003/2004)
| |
2004/2005
|
2003/2004
|
| Annual exemptions |
£
|
£
|
| individuals and personal representatives |
8,200
|
7,900
|
| trusts for disabled persons |
8,200
|
7,900
|
| other trusts* |
4,100
|
3,950
|
|
| |
2004/2005
|
2003/2004
|
| Chattels exemption |
£
|
£
|
| maximum proceeds |
6,000
|
6,000
|
|
Indexation allowance
- frozen after March 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*
| Number of complete years for which asset held |
Equivalent % rate for
taxpayers at
|
|
% of gain chargeable
|
higher rate
|
lower rate
|
starting rate
|
| Less than 1 |
100
|
40
|
20
|
10
|
| 1 |
50
|
20
|
10
|
5
|
| 2 or more |
25
|
10
|
5
|
2.5
|
| |
|
|
|
|
|
Gains on non-business assets
| Number of complete years after 5 April 1998 for which asset held† |
Equivalent % rate for
taxpayers at
|
|
% of gain chargeable
|
higher rate
|
lower rate
|
starting rate
|
| Less than 3 |
100
|
40
|
20
|
10
|
| 3 |
95
|
38
|
19
|
9.5
|
| 4 |
90
|
36
|
18
|
9
|
| 5 |
85
|
34
|
17
|
8.5
|
| 6 |
80
|
32
|
16
|
8
|
| 7 |
75
|
30
|
15
|
7.5
|
| 8 |
70
|
28
|
14
|
7
|
| 9 |
65
|
26
|
13
|
6.5
|
| 10 or more |
60
|
24
|
12
|
6
|
|
*
†
|
Business Advice