CAPITAL GAINS TAX
Annual Exemption:
| Individuals | Most Trusts | |
| £ | £ | |
| 2003 / 2004 | 7,900 | 3,950 |
| 2002 / 2003 | 7,700 | 3,850 |
| 2001 / 2002 | 7,500 | 3,750 |
| 2000 / 2001 | 7,200 | 3,600 |
| 1999 / 2000 | 7,100 | 3,550 |
| 1998 / 1999 | 6,800 | 3,400 |
| 1997 / 1998 | 6,500 | 3,250 |
| 1996 / 1997 | 6,500 | 3,250 |
TAPER RELIEF - is a relief from Capital Gains Tax ( CGT ) that has effect by reducing the amount of chargeable gains arising to individuals, trustees and personal representatives.
Non business assets which you acquire before 17 March 1998 and which you disposed of during 2002-2003 qualify for an additional one year in the qualifying holding period. You should add one year to the period for which any such asset was actually held after 5 April 1998 to establish its qualifying holding period.
| Gains on business assets | Gains on non business assets | ||
|
Number of Whole Years |
Percentage of gain chargeable |
Number of Whole Years |
Percentage of gain chargeable |
| 1 | 50 | 1 | 100 |
| 2 or more | 25 | 2 | 100 |
| 3 | 95 | ||
| 4 | 90 | ||
| 5 | 85 | ||
| 6 | 80 | ||
| 7 | 75 | ||
| 8 | 70 | ||
| 9 | 65 | ||
| 10 or more | 60 | ||
SOURCE TAX DIGEST 215 MARCH 2001
HOLD OVER RELIEF - is a relief that must be claimed. The chargeable gain on the disposal by the donor is reduced by the gain held over and the acquisition cost for the receiver is reduced by the same amount.
ROLLOVER RELIEF - is a relief that can only be claimed by a person carrying on a trade and making a disposal of a qualifying asset and the purchase of another qualifying asset.
The chargeable gain on the disposal of the old asset is reduced to nil and the base cost of the new asset is reduced by the same amount.
DEFERRAL RELIEF - is a relief that can only be claimed by an individual. It is available when eligible shares are acquired in a qualifying company during a qualifying period.
SOURCE TAX DIGEST 239 MARCH 2003
RETIREMENT RELIEF - Warning Stealth Tax Alert
- now abolished
20 years ago a private individual moved from his £25,000 3 bedroom semi to a 4 bedroom detached house costing £50,000. On retirement he sold it for £400,000 and moved to something smaller there is no Capital Gains Tax Liability.
20 years ago an engineer living in a 3 bedroom semi worth £25,000 borrows £25,000 to purchase an industrial unit from which he ran his business (and created employment opportunities). On retirement the unit is sold for £200,000 giving rise to a Capital Gains Tax Liability of £15,000.
The moral of the story is it is more efficient to invest in your home than to invest in your business.