Capital Gains Tax

Capital gains tax rates and bands are as follows:
	2010/11	2009/10
On chargeable gains	18%	18%
Annual exemption
- individual	£10,100	£10,100
- most trustees	£5,050	£5,050

Chattels exemption
(proceeds per item or set)	£6,000	£6,000

Entrepreneurs' Relief

This reduces an individual’s chargeable gain on qualifying assets by 4/9 – an effective rate of 10%. Claims may be made on more than one occasion, up to a “lifetime” total of £2 million (£1 million to 5 April 2010).

Notes

Transfers between husband and wife or civil partners living together are generally exempt.
Capital gains of all trusts for 2010/11 are taxed at the standard rate of 18%. 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.