From 6 April 2008 flat rate of 18%for individuals and trusts.
Pre 6 April 2008 individuals charged at 10%, 20%or 40% depending on their marginal rate of tax, trusts charged at 40%.
Losses
Relief available against gains for:
capital losses of the same tax year and those brought forward
trading losses of same and following tax year.
Annual exemptions
2008/2009
2007/2008
£
£
Individuals and personal representatives
9,600
9,200
Certain trusts for disabled persons
9,600
9,200
Other trusts*
4,800
4,600
* Reduced pro-rata if more than one trust per settlor subject to minimum of 10% of
full amount.
Chattel exemptions
2008/2009
2007/2008
£
£
Maximum proceeds
6,000
6,000
Other main exemptions
Principal private residence.
Treasury stock and qualifying corporate bonds.
Qualifying shares in EIS companies, VCT’s, personal equity plans,
individual savings accounts and child trust funds.
Passenger vehicles.
Certain gifts of assets to charities.
Entrepreneurs’ relief
Available for disposals made after 5 April 2008.
Effective 10%rate on gains within lifetime limit of £1 million.
Applies to disposals of trading businesses and certain disposals of shares in trading companies.
Trustees can benefit from relief in certain circumstances.
No minimum age.
Qualifying conditions must be met for 12 months immediately prior to disposal.
Rollover relief
Capital gains tax deferral on sale of qualifying assets provided:
proceeds reinvested in replacement qualifying assets
replacement assets purchased between 1 year before and 3 years after sale*.
* Time limit may be extended at the discretion of HM Revenue & Customs.
Holdover relief
Capital gains tax deferral on gifts of qualifying assets including:
business assets (including shares in unquoted trading companies)
gifts with an immediate charge to inheritance tax
heritage properties and maintenance funds.
Restrictions apply to transfers into settlor interested settlements.
Small part disposals
Relief for part disposals of land may be available where proceeds:
do not exceed 20%of the current market value of the holding
before disposal; and
do not exceed £20,000 in the tax year.
Indexation allowance
Withdrawn for disposals after 5 April 2008.
Amount of allowance frozen at April 1998 for individuals and trusts.
Taper relief
Withdrawn for disposals after 5 April 2008.
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
2½
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
9½
4
90
36
18
9
5
85
34
17
8½
6
80
32
16
8
7
75
30
15
7½
8
70
28
14
7
9
65
26
13
6½
10 more
60
24
12
6
* 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.
Business Advice 