Tax Facts 2008/9

Capital gains, inheritance, stamp duty and stamp duty land tax

CAPITAL GAINS TAX
  2008/09 2007/08
Individuals £ £
Exemption 9,600 9,200
For 2008/09, balance of gains charged at 18%.
For 2007/08, balance of gains (reduced by taper relief*) charged as top slice of income (at savings rates i.e. 10%, 20% or 40%).
Trusts    
Exemption 4,800 4,600
Balance of gains (reduced by taper relief) 18% 40%

*Taper relief abolished for gains arising on or after 6 April 2008.

Entrepreneurs’ Relief
For gains arising on or after 6 April 2008, the first £1m of qualifying gains are charged at an effective rate of 10%. Gains in excess of £1m are charged at 18%.

INHERITANCE TAX
Death Lifetime Chargeable transfers
rate rate 2008/09 2007/08
% % £'000's £'000's
Nil Nil 0 - 312* 0 - 300
40 20 Over 312* Over 300
*Potentially increased for surviving spouses or civil partners who die on or after 9 October 2007.
Reliefs      
Annual Exemption £3000 Marriage parent £5,000
Small gifts £250   grandparent £2,500
      bride/groom £2,500
      other £1,000
Reduced charge on gifts within seven years of death      
years before death 0 -3 3 -4 4 - 5 5 - 6 6 - 7
% of death charge 100 80 60 40 20
STAMP DUTY & STAMP DUTY LAND TAX
Land and buildings (on full consideration paid)      
Rate Residential property Non-residential
  Disadvantaged areas Other  
  £ £ £
Nil 0 - 150,000 0 - 125,000 0 - 150,000
1% 150,001 - 250,000 125,001 - 250,000 150,001 - 250,000
3% 250,001 - 500,000 250,001 - 500,000 250,001 - 500,000
4% Over 500,000 Over 500,000 Over 500,000
Shares and securities - rate 0.5%      

Disclaimer

The information in this tax card is based upon the 2008 Budget and other earlier announcements and may be subject to amendment by the Finance Act.

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Tax Facts 2008/09

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