Capital Gains Tax
| 2014/15 | 2013/14 | |
|---|---|---|
| Annual exempt amount | £11,000 | £10,900 |
| Tax rate | ||
| – basic rate taxpayer | 18% | 18% |
| – higher rate taxpayer | 28% | 28% |
| – Entrepreneurs’ Relief (ER) | 10% | 10% |
Net gains after losses, all reliefs and annual exemption are added to taxable income to determine the applicable CGT rate. ER is available for lifetime gains of up to £10m on disposals of sole trade, interest in partnership trade, or shares in a trading company by an officer or employee owning at least 5%. Other conditions apply.
Trustees receive up to half the annual exemption and pay at a flat rate of 28%.