| Capital gains tax rates and bands are as follows: | |||
| On chargeable gains | 2010/11 | 2009/10 | |
| up to 22 June 2010 | from 23 June 2010 | ||
| Standard rate | 18% | 18% | 18% |
| Higher rate for higher and additional rate taxpayers | N/A | 28% | N/A |
| Rate for trust gains | 18% | 28% | 18% |
| Annual exemption | |||
| - individual | £10,100 | £10,100 | |
| - settlement(s) (spread over total number) | £5,050 | £5,050 | |
| Transfers between husband and wife living together are exempt | |||
| Chattels exemption | |||
| (proceeds per item or set) | £6,000 | £6,000 | |
| Entrepreneurs relief | |||
| Lifetime limit | £2,000,000 | £5,000,000 | £1,000,000 |
| gain reduced by 4/9th, remainder taxed at standard rate | gain taxed at 10% | gain taxed at 10% | |
- Entrepreneurs' Relief: Up to 22 June 2010, this relief will reduce the chargeable gain on qualifying assets by 4/9ths, resulting in an effective rate of 10%. After 23 June 2010 there is a straight 10% capital gains tax charge on the gain with no 4/9ths reduction. An individual will be able to make claims for disposals on or after 6 April 2008. Claims may be made on more than one occasion, up to the “lifetime” limit.
- Transfers between husband and wife or civil partners living together are generally exempt.
- Where there are several trusts created by the same settlor, the annual exemption is divided equally between them, subject to a minimum exemption of £1,010 for each trust.
