Capital Gains Tax (CGT)

Rates
Individuals (as top slice of income): Savings tax rates
Trusts where settlor or spouse retains interest – As settlor’s gain
Other trusts and personal representatives – 34%
Married Couples (unless permanently separated) – No tax effect for transfer between spouses
Exceptions
Individuals Pounds 7,200
Trusts Pounds 3,600
Main home Unlimited
Chattels – per item Pounds 6,000
Retirement Relief
For businesses and holdings of 5% or more in qualifying trading companies. For disposals if age 50 or over (or ill health):

Up to Pounds 150,000 – exempt
Pounds 150,000- Pounds 600,000 – 50% taxable

Indexation Relief
For individuals indexation relief is available up to April 1998.

Taper Relief – reductions in chargeable gains
Business assets
Sold before 6.4.2000 – 7.5% for each complete year asset held after 5.4.1998 plus 1 year if held on 16.3.1998.
Sold after 5.4.2000 – 12.5% for each of the first 2 complete years asset held after 5.4.1998, 25% for each of the following 2 complete years.
Other assets -5% for the third and each following complete year asset held after 5.4.1998 plus 1 year if held on 16.3.1998. Maximum relief reached after 10 years.

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