Capital Gains Tax

Capital Gains Tax
Annual Exempt Amount 2010/11 (£) 2011/12 (£)
Individuals Etc * £10,100 £10,600
Other Trustees £5,050 £5,300

Net gains after all reliefs, losses and annual excempt amount are taxed at 18% on or before 22 June 2010. After 22 June 2010 the tax rate for individuals is dependant upon the total amount of taxable income. C.G.T. will be charged at 28% as top slice income over £42,475.

The tax rate for trustees or personal representatives of someone who has died is 28%.

Entrepreneurs' Relief
For disposals of sole trade, interest in a partnership trade, or shares in a trading company by an employee owning at least 5% of the share capital, the gain (up to £10m lifetime allowance) is reduced to 5/9, to give an effective rate of CGT of 10%. Gains above the allowance are taxed at 18% / 28%.