Capital Gains Tax CGT Rates
Capital Gains Tax CGT Rates and Allowance 2008/2009 (2007/2008 in brackets)
Annual Exemption for Individuals
Please note that husband and wife spouses and civil partners all have their own exemption of £9,600 (£9,200) per year.
This means that you can realise adjusted gains each year to the value of the allowance with no liability to taxes.
Annual Exemption for Trusts - £4,800 (£4,600)
This means a trust can realise adjusted gains each year to the value of the allowance with no liability to taxes. Normally the allowance is for all trusts created by the same person i.e. there is only one allowance for all trusts.
Annual Exemption - Businesses
Nil - there is no annual exemption, all gains are deemed as trading receipts and taxable at normal business or corporation tax rates.
Rates of Capital Gains Tax CGT: Individuals - Chargeable gains are added to your taxable income.
- Standard Rate: The capital gains tax CGT rate is now a flat rate of 18% of the chargeable gain
- Entrepreneurs Relief Rate for Business Assets: CGT rate of 10% of the chargeable gain is charged as a concession on the sale of trading businesses and shares with cumulative lifetime allowance for the individual of £1m.
Withdrawal of Tiered Rates and Taper Relief Before 5 April 2008:
Taxes used to be levied based upon your highest rates of income tax. for 2007/2008 and was tiered at: Lower rate taxpayers -10% capital gains tax, CGT Basic rate taxpayers - 20% capital gains tax CGT and Higher rate taxpayers - 40% capital gains tax CGT). Taper relief has also been abolished.
Rates of Tax - Trusts
The rate applicable to trusts is currently 40%
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