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Rates & Allowances -
2007 / 2008
Capital Gains Tax
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Capital gains tax rates and bands are as follows: |
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2007/08 |
2006/07 |
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Taxed as
top slice of savings income |
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Annual exemption |
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- individual |
£9,200 |
£8,800 |
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- settlement(s) (spread over total number) |
£4,600 |
£4,400 |
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Transfers between husband and wife living together are exempt |
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Chattels
exemption |
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(proceeds per item or set) |
£6,000 |
£6,000 |
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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 |
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No. of complete years
held
after 5 April 1998 |
% gain chargeable |
|
1 |
100 |
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2 |
100 |
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3 |
95 |
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4 |
90 |
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5 |
85 |
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6 |
80 |
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7 |
75 |
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8 |
70 |
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9 |
65 |
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10
or more |
60 |
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Business Assets |
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No of complete years
held |
% of gain chargeable |
|
0 |
100 |
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1 |
50 |
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2
or more |
25 |
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Notes
Transfers between husband and wife or civil partners living together are
exempt.
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.
Capital gains of all trusts are taxed at the special trust rate
of 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 £920 (2006/07 £880) for each trust.
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