Capital Gains Tax


Capital gains tax rates and bands are as follows:
  2011/12 2005/06
Taxed as top slice of savings income    
Annual exemption    
- individual £8,800 £8,500
- settlement(s) (spread over total number) £4,400 £4,250
Transfers between husband and wife living together are exempt
 
Chattels exemption    
(proceeds per item or set) £6,000 £6,000

Taper Relief

For gains realised after 5 April 1998 by individuals or trustees, indexation allowance is frozen and the gain reduced by a tapering relief. The value of the taper relief depends on whether or not the asset is a business asset, and on the number of complete years the asset has been held after 5 April 1998 (with an additional "bonus" year for non-business assets held on 16 March 1998).


Non-Business Assets
No. of complete years
held after 5 April 1998
% gain chargeable
1 100
2 100
3 95
4 90
5 85
6 80
7 75
8 70
9 65
10 or more 60


Business Assets
No of complete years
held
Disposals
% of gain chargeable
0 100
1 50
2 or more 25

Notes

  1. Transfers between husband and wife or civil partners living together are exempt.
  2. Capital gains are regarded as the top slice of savings income. Rates of 10%, 20% and 40% will therefore apply to gains taxed on individuals, as appropriate. Gains taxed on trustees are usually taxed at the special trust rate of 40%.

 

 

 

 

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