Capital Gains Tax
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Annual exempt amount 2010/11: individuals £10,100, most trustees £5,050 (unchanged from 2009/10).
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Net gains after all reliefs, losses and annual exempt amount are taxed at 18% (disposals pre 23.6.10). For disposals after 22.6.10, an individual's net gains are added to income and taxed at 18% (basic rate band) and 28% (higher rate band). For trusts, the CGT rate is 18% (pre 23.6.10 disposals) and 28% (post 22.6.10 disposals).
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Entrepreneurs' relief
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For disposals of sole trade or interest in a partnership trade, or shares in a trading company by an employee owning at least 5%, the gain (up to the lifetime allowance) is taxed at an effective or actual rate of CGT of 10%. The lifetime limit is increased to £5m for disposals after 22.6.10 (previously £2m from 6.4.10 - 22.6.10, £1m pre 6.4.10).
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