Capital Gains Tax

1. Chargeable Gains will be taxed at 18%

2. Transfers between spouses and civil partners are generally exempt

3. Annual exempt amount:

individuals £10,100
most trustees £5,050

4. Entrepreneurs’ Relief

The relief will be available to individual and certain trustees, in respect of:

gains made on the disposal of all or part of a business
gains made on disposals of assets following the cessation of a business
gains made by certain individuals who are involved in running the business (trading company not an investment company)

It allows you to claim relief on the first £1 millon of gains made on the disposals after 6th April 2008, increasing to £2 million after 6th April 2010.

Several claims can be made by an individual over his lifetime as long as the total claims do not exceed £1 million or £2 million from 6th April 2010.

Entrepreneurs’ Relief reduces the amount of gains liable to Capital Gains Tax by four ninths, resulting in an effective 10 per cent rate on all qualifying gains up to £1 million or £2 million from 6th April 2010.

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