Capital Gains Tax Reform

Indexation and taper relief will no longer apply to disposals by individuals and trustees after 5 April 2008.

Annual Exemptions
2010 / 11
2009 / 10
Individuals & certain trusts
£10,100
£10,100
Trusts generally
£5,050
£5,050
Chattels (restricted to 5/3rds of proceeds exceeding limit)
£6,000
£6,000

Transfers between husband and wife living together or between civil partners are exempt.

Rate of Tax
2010 / 11
2009 / 10
- Individuals
18%
18%
- Trusts & estates
18%
18%

Entrepreneurs' Relief
2010 / 11
2009 / 10
Entrepreneurs' Relief effective rate
10%
10%
Entrepreneurs' Relief lifetime limit of gains
£2,000,000
£1,000,000


4/9th of gain (effective rate of 10%). For trading businesses & companies (minimum 5% employee or director shareholding) held for at least one year.