Capital gains tax
| Capital gains tax rates and bands are as follows: |
| |
2010/11 |
2009/10 |
| Standard rate |
18% |
18% |
| Higher rate from 23 June 20102 |
28% |
N/A |
| Entrepreneurs' relief - effective rate |
10% |
10% |
| Entrepreneurs' relief - lifetime limit to 22 June 2010 |
£2,000,000 |
£1,000,000 |
| Entrepreneurs' relief - lifetime limit from 23 June 2010 |
£5,000,000 |
|
| Annual exemption |
|
|
| - individual |
£10,100 |
£10,100 |
| - settlement(s) (spread over total number) |
£5,050 |
£5,050 |
| Chattels exemption |
| (proceeds per item or set) |
£6,000 |
| Marginal relief |
5/3 excess over £6,000 |
Notes
- Transfers between spouses and civil partners living together are exempt.
- Entrepreneurs' relief is available in respect of gains made on the disposal of all or part of a business, or gains made on disposals of assets following the cessation of a business or gains by certain individuals who were involved in running the business. The first £2 million (rate to 22 June 2010): £5 million (rate from 23 June 2010) of gains that qualify will be charged to CGT at an effective rate of 10%. Gains in excess of the exception will be charged at the normal rate of either 18% or 28%. An individual will be able to make claims for relief on more than one occasion, up to a lifetime total of £5 million (from 23 June 2010).
Did you know?
The revenue the Government are budgeting to generate from capital gains tax this year amounts to £2.6 billion (2009/10 - £2.5 billion).
