Capital gains

Capital Gains Tax
2008-2009 2007-2008
Individuals 18%* Tax rate aligned with those for savings

Trusts

18%* 40%

Annual Exemptions Individuals and personal representatives

Trusts generally



£9,600



£4,800



£9,200



£4,600

Chattels Exemption (5/3 taxable on excess) £6,000 £6,000

* Indexation and taper relief no longer available for disposals by individuals and trusts after 5.4.08.

Taper relief - for disposals by individuals and trusts before 5.4.08
Gains on business assets Gains on non-business assets
Period asset held (years) % of gain chargeable

Equivalent tax rates for higher rate/basic rate taxpayer

Number of complete years after 05.04.98 for which asset held

 % of gain chargeable

Equivalent tax rates for higher rate/basic rate taxpayer

0-1 100 40/20 0 - 2 100 40/20
1-2 50 20/10 3 95 38/19
2 25 10/5 4 90 36/18
5 85 34/17
6 80 32/16
7 75 30/15
8 70 28/14
9 65 26/13
10 or more 60 24/12

For non-business assets acquired before 17.03.98, these qualify for an additional bonus year to the period for which they are treated as held after 05.04.98.

Entrepreneurs’ Relief - from 06.04.08 the first £1 million of gains on certain types of assets will be charged to CGT at an effective rate of 10%. This is a lifetime limit.

- from 06.04.08 the first £1 million of gains on certain types of assets will be charged to CGT at an effective rate of 10%. This is a lifetime limit.