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Whalley and co Accounting Castle Bromwich Birmingham Accountants Bookkeeping


Whalley and co Accounting Castle Bromwich Birmingham Accountants Bookkeeping

Tax Information

Capital Gains Tax

Annual Exemption
Individuals (a) , personal representatives (b) and certain trusts (c)

Exempt amount
of net gains
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
£7,900 £8,200 £8,500 £8,800 £9,200 £9,600
  • For 2008-09 onwards, an individual who claims to use the remittance basis for a tax year is not entitled to the capitals gains tax annual exemption for that year. This does not apply if the individual's unremitted foreign income and gains for the year are less than £2,000.
  • Year of death and following two years (maximum).
  • Trusts for mentally disabled persons and those in receipt of attendance allowance or disability living allowance.
    Exemption dividend by number of qualifying settlements created (after 9 March 1981) by one settlor, subject to a minimum of one-tenth.
Trusts * generally
Exempt amount
of net gains
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
£3,950 £4,100 £4,250 £4,400 £4,600 £4,800
* Exemption divided by number of qualifying settlements created (after 6 June 1978) by one settlor, subject to a minimum of one-fifth.

Chattel exemption

Disposals exemption Marginal relief: Maximum chargeable gain
From 1989-90 onwards £6000 5/3 excess over £6,000

Rates of Tax

2008 - 09
Individuals, trusts and personal representatives 18%
2007 - 08
Individuals to income tax starting rate limit L2,230 10%
  from L2,231 to income tax basic rate limit L34,600 20%
  above income tax basic rate limit L34,600 40%
Trusts and personal representatives 40%
2006 - 07
Individuals to income tax starting rate limit L2,150 10%
  from L2,151 to income tax basic rate limit L33,300 20%
  above income tax basic rate limit L33,300 40%
Trusts and personal representatives 40%
2004-05 to 2005-06
Individuals to income tax starting rate limit 10%
  above starting rate limit to income tax basic rate limit 20%
  above income tax basic rate limit 40%
Trusts and personal representatives 40%
2000-01 to 2003-04
Individuals to income tax starting rate limit 10%
  above starting rate limit to income tax basis rate limit 20%
  above income tax basic rate limit 40%
Trusts and personal representatives 34%

Gains are taxed on individuals as the top slice of income.
Trusts for vulnerable persons: From 2004-05 onwards, gains taxed at beneficiary's rate (on beneficiary if UK resident or on trustees if beneficiary not UK-resident)
Settlements where settlor retains an interest: chargeable on settlor at own rates.
Adjustment is necessary for savings income (including interest from banks and building societies, interest distributions from authorised unit trusts, interest from gilts and other securities including corporate bonds, purchased life annuities, and discounts).
Adjustment is also necessary for dividends or other qualifying distributions from a UK-resident company.