Budget 2006
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Capital Gains Tax
| Annual exempt amount 2006/07: individuals £8,800, trustees £4,400. Relief given for effect of inflation for periods of ownership up to April 1998. Taper relief is based on complete years of ownership after 5 April 1998 (with one year added for ownership on 17.3.98 in the case of non-business assets): |
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| Complete years owned for taper purposes: |
% of gain charged |
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Business asset |
Non-business asset |
| 1 year |
50% |
100% |
| 2 years |
25% |
100% |
| 3 years |
25% |
95% |
| 4 years |
25% |
90% |
| 5 years |
25% |
85% |
| 6 years |
25% |
80% |
| 7 years |
25% |
75% |
| 8 years |
25% |
70% |
| 9 years |
25% |
65% |
| 10 years (max. relief) |
25% |
60% |
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| Net gains after all reliefs and annual exempt amount are taxed at marginal income tax rates for interest income (ie 10%, 20%, 40%). |
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