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Capital Gains Tax

Capital gains tax rates and bands are as follows:
  2008/09 2007/08
Standard rate 18% n/a
Taxed as top slice of savings income n/a 20/40%
Entrepreneurs' relief - effective rate 10% n/a
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
Marginal relief 5/3 excess over £6,000
Entrepreneurs' relief 2 (from 6 April 2008) £1 million

Notes

  1. Transfers between spouses and civil partners living together are exempt.
  2. Entrepreneurs' relief is available in respect of gains made on the disposal of all or part of a business, or gains made on disposals of assets following the cessation of a business or gains by certain individuals who were involved in running the business. The first £1 million of gains that qualify will be charged to CGT at an effective rate of 10%. Gains in excess of £1 million will be charged at the normal rate of 18%. An individual will be able to make claims for relief on more than one occasion, up to a lifetime total of £1 million of gains qualifying for relief.

Did you know?

That the Government expect to increase the tax yield from capital gains tax by £200 million. The estimate for the current year of tax receipts is £5 billion.