Capital Gains Tax (CGT) rates and bands

2011/12 2010/11 2009/10 2008/09
Standard rate (basic rate taxpayers) 18% 18% 18% 18%
Higher rate taxpayers rate (from 23 June 2010) 28% 28% 18% 18%
Entrepreneurs’ relief – effective rate 10% 10% 10% 10%
Annual exemption
Individual £10,600 £10,100 £10,100 £9,600
Settlement(s) £5,300 £5,050 £5,050 £4,800
Chattels exemption (proceeds per item or set) £6,000
Marginal relief 5/3 excess over £6,000
Entrepreneurs’ relief lifetime allowance £10 million £5 million/
£2 million until
22 June 2010		 £1 million £1 million

Capital gains tax basic rules:

  • A transfer between spouses or civil partners is tax-free (made on a no gain/no loss basis).
  • A gift made between connected persons is treated as being made at market value.
  • When a disposal attracts another form of tax, such as inheritance tax or income tax, credit is generally given so there is no double charge.
  • The indexation allowance no longer applies to individuals.
  • An income tax trade loss may be offset against capital gains.
  • Capital gains may be deferred by reinvestment.
  • Non-UKresidents are not taxed on gains made on UK situs assets, providing that they remain non-resident for a qualifying time period.

 

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