|
|
Capital Gains Tax
| Capital gains tax rates and bands are as follows: |
| |
2004/05 |
2003/04 |
| Taxed as top slice of savings income |
|
|
| Annual exemption |
|
|
| - individual |
£8,200 |
£7,900 |
| - settlements (spread over total number) |
£4,100 |
£3,950 |
| Transfers between husband and wife living together are exempt |
| |
| Chattels exemption |
|
|
| (proceeds per item or set) |
£6,000 |
£6,000 |
|
Taper Relief
For gains realised after 5 April 1998 by individuals or trustees, indexation allowance is frozen and the gain reduced by a tapering relief. The value of the taper relief depends on whether or not the asset is a business asset, and on the number of complete years the asset has been held after 5 April 1998 (with an additional "bonus" year for non-business assets held on 16 March 1998).
| Non-Business Assets |
No. of complete years
held after 5 April 1998 |
% gain chargeable |
| 1 |
100 |
| 2 |
100 |
| 3 |
95 |
| 4 |
90 |
| 5 |
85 |
| 6 |
80 |
| 7 |
75 |
| 8 |
70 |
| 9 |
65 |
| 10 or more |
60 |
|
| Business Assets |
No of complete years
held after 5 April 1998 |
Disposals After 5 April 2002 |
| % of gain chargeable |
| 0 |
100 |
| 1 |
50 |
| 2 or more |
25 |
|
Notes
- Transfers between husband and wife living together are exempt.
- Capital gains are regarded as the top slice of savings income. Rates of 10%, 20% and 40% will therefore apply to gains taxed on individuals, as appropriate. Gains taxed on trustees are usually taxed at the special trust rate of 40% (2003/04 34%).
|
|
