Capital Gains Tax
Each tax year nearly everyone who is liable to Capital Gains Tax gets an annual tax-free allowance – known as the ‘Annual Exempt Amount’. You only pay Capital Gains Tax if your overall gains for the tax year (after deducting any losses and applying any reliefs) are above this amount.
Exemptions
|
2010/11 |
2009/10 |
| Individuals, estates, etc |
£10,100 |
£10,100 |
| Trusts Generally |
57.43% |
11.71% |
| Chattels (restricted to 5/3rds of proceeds exceeding limit) |
56.66% |
17.81% |
Capital Gains Tax rates
|
2010/11 |
2009/10 |
| Individuals |
18% |
18% |
| Trusts and Estates |
18% |
18% |
Entrepreneurs’ Relief 2009-11
|
2010/11 |
2009/10 |
| Lifetime Limit |
£2,000,000 |
£1,000,000 |
| 4⁄9ths of gain (effective tax rate of 10%). For trading businesses & companies (minimum 5% employee or director shareholding) held for at least one year.
|
