The main rate of Capital Gains Tax is 18% for 2008/09. In 2007/08 capital gains were taxed as top slice of income at the individual's relevant income tax rate. Exemptions are as follows:
| Exemptions | 2007/08 | 2008/09 |
|---|---|---|
| Annual - Individual | £9,200 | £9,600 |
| Annual - Settlement(s) from Trusts | £4,600 | £4,800 |
| Chattels (proceeds per item or set) | £6,000 | £6,000 |
Transfers between husband and wife or civil partners living together are generally exempt. Capital gains of all trusts for 2008/09 are taxed at the standard rate of 18% (2007/08 special rate for trusts 40%). Where there are several trusts created by the same settlor, the annual exemption is divided equally between them, subject to a minimum exemption of £960 (2007/08 £920) for each trust.
This relief will reduce the chargeable gain on qualifying assets by 4/9, resulting in an effective rate of 10%. An individual will be able to make claims for disposals on or after 6 April 2008. Claims may be made on more than one occasion, up to a "lifetime" total of £1 million of gains.
This data for legislative rates is for information purposes only and PG Business Solutions are not responsible for actions taken or not taken in respect of information provided. Should you wish to know more about how they affect you or your business liability then please contact us for specified tailored advice suited to your individual circumstances. Errors and omissions in this information are excepted.