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Capital gains tax
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Capital gains tax annual exempt amount |
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| 2008/09 | 2009/10 | ||
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Individuals etc. |
£9,600 |
+£500 |
£10,100 |
|
Most trustees |
£4,800 |
+£250 |
£5,050 |
The capital gains tax (CGT) annual exempt amount is increased in line with statutory indexation to £10,100 for the tax year 2009-10 for individuals, personal representatives of deceased persons and trustees of certain settlements for the disabled. The annual exempt amount for most other trustees is increased to £5,050.
Every husband, wife, civil partner and child has his or her own £10,100 annual exempt amount.
For gains above the annual exempt amount, the CGT rate for 2009-10 will be 18 per cent. In addition, a new entrepreneurs' relief will reduce the effective tax rate on some gains to 10 per cent.
The amount chargeable to CGT is added to the individual's income liable to income tax and treated as the top part of that total.