Duddon & Co Accountants

 

Capital Gains Tax

Capital gains tax rates and bands are as follows:
  2007/08 2006/07
Taxed as top slice of savings income    
Annual exemption    
- individual £9,200 £8,800
- settlement(s) (spread over total number) £4,600 £4,400
Transfers between spouses and civil partners living together are exempt
Chattels exemption
(proceeds per item or set) £6,000
Marginal relief 5/3 excess over £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 spouses and 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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