There will be a new rate of CGT of 28% from 23 June 2010. For

individuals, the rate of CGT remains at 18% where their net taxable

gains and taxable income are less than the income tax basic rate

limit, currently £37,400. The 28% rate applies to gains or parts of

gains that exceed that limit. Trustees and the personal

representatives of deceased persons are subject to the 28% rate

rather than the 18% rate on all taxable gains.

 

Relief for sale of business assets - entrepreneurs relief

Introduced from 6th April 2008 (no change from 23.06.2010)- a disposal will qualify for the relief if:

• It is all or a distinct part of a trading business
• It is assets of a business following cessation of a business
• Shares in an individuals personal trading company
• Assets owned by an individual and used in his personal trading company

As a result of the relief:

• The first £5 million (increased from £2 million on 23rd June 2010) of gains will qualify for relief at 10%
• Claims may be made on more than one occasion up to the lifetime limit

There is no minimum age to qualify and the criteria above must be met for a period of at least one year.

Relief will still be available for the disposal of assets used in a business for up to three years following cessation.

The relief will apply to qualifying holiday lettings but not to other lettings businesses either commercial or residential.

Annual Exemption

CGT relief	2010/2011	2009/2010
Annual exemption for individuals	£10,100	£10,100
Annual exemption for trustees	£5,050	£5,050

Inheritance tax
The nil rate band threshold has been maintained at £325,000 for 2010/11.

Stamp duty land tax
Stamp taxes and duties: transfers of land and buildings (consideration paid)

Rate	Residential	Non-Residential
Total value of consideration
Zero	£0-£125,000	£0-£150,000
1%	over £125,000 -£250,000	over £150,000 -£250,000
3%	over £250,000 -£500,000	over £250,000 -£500,000
4% *	over £500,000	over £500,000

 

* From 6th April 2011 on property acquisitions in excess of £1,000,000 there will be a new rate of 5%.

Redwoods are regulated by the Association of Chartered Certified Accountants and are Registered Auditors.