TaxPersonal TaxCapital Gains Tax (CGT)

Capital Gains Tax (CGT)

2000/2001

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.

Related Articles

Rent-a-room relief – the survey says…

Personal Tax Rent-a-room relief – the survey says…

1m Helen Thornley, ATT Technical Officer
What should the OTS prioritise in its review of inheritance tax?

Personal Tax What should the OTS prioritise in its review of inheritance tax?

3m Alia Shoaib, Reporter
LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

4m Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

5m Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

6m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

6m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

8m Alia Shoaib, Reporter
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

9m Emma Smith, Managing Editor