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Capital Gains Tax

Capital gains tax rates and bands are as follows:
	2008/09	2007/08
Standard rate	18%	n/a
Taxed as top slice of savings income	n/a	20/40%
Entrepreneurs' relief - effective rate	10%	n/a
Annual exemption
- individual	£9,600	£9,200
- settlement(s) (spread over total number)	£4,800	£4,600
Chattels exemption
(proceeds per item or set)	£6,000
Marginal relief	5/3 excess over £6,000
Entrepreneurs' relief ² (from 6 April 2008)	£1 million

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 £1 million of gains that qualify will be charged to CGT at an effective rate of 10%. Gains in excess of £1 million will be charged at the normal rate of 18%. An individual will be able to make claims for relief on more than one occasion, up to a lifetime total of £1 million of gains qualifying for relief.

Did you know?

That the Government expect to increase the tax yield from capital gains tax by £200 million. The estimate for the current year of tax receipts is £5 billion.

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