business & tax

Capital Gains Tax CGT Rates and Allowance 2009/2010 - Remain Unchanged for 2010/2011 * except for Higher Rate Tax Payer disposals after 22 June 2010

Annual Exemption for  Individuals

Please note that husband and wife spouses and civil partners all have their own exemption of £10,100 for the 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 - £5,050

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
• *HIGHER RATE Tax Payers will pay 28% capital gains tax with effect midnight on 22 June 2010
• 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 £2m increasing to £5m. 
  

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 based upon the trustee and can be anything up to 40% for certain types of income to the trust.

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