Capital gains tax

Capital gains tax - 25 March 2010

Capital gains tax rates and bands are as follows:
	2010/11	2009/10
Standard rate	18%	18%
Higher rate from 23 June 2010²	28%	N/A
Entrepreneurs' relief - effective rate	10%	10%
Entrepreneurs' relief - lifetime limit to 22 June 2010	£2,000,000	£1,000,000
Entrepreneurs' relief - lifetime limit from 23 June 2010	£5,000,000
Annual exemption
- individual	£10,100	£10,100
- settlement(s) (spread over total number)	£5,050	£5,050
Chattels exemption
(proceeds per item or set)	£6,000
Marginal relief	5/3 excess over £6,000

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 £2 million (rate to 22 June 2010): £5 million (rate from 23 June 2010) of gains that qualify will be charged to CGT at an effective rate of 10%. Gains in excess of the exception will be charged at the normal rate of either 18% or 28%. An individual will be able to make claims for relief on more than one occasion, up to a lifetime total of £5 million (from 23 June 2010).

The revenue the Government are budgeting to generate from capital gains tax this year amounts to £2.6 billion (2009/10 - £2.5 billion).