Capital Gains Tax (CGT)
There were no announcements with regards to CGT in this year’s Budget.
As previously announced, the CGT rates in place from 6 April 2017 are as follows:
- basic rate taxpayer 10%
- higher rate taxpayer 20%
However, there is an 8% ‘surcharge’ added for gains on residential property.
This means if you sell a property not covered by Private Residence Relief, you will be subject to CGT at the rates of 18% (basic rate taxpayer) or 28% (higher rate taxpayer).
The annual exempt amount, which is the amount of gain that a person can make on the disposal of an asset before they have to pay any CGT, is set at £11,100 for the current 2016/2017 tax year and set to rise to £11,300 for the 2017/2018 tax year.
Planning should be undertaken before disposing of any assets to ensure that the annual exemption and any other available reliefs are taken advantage of. Please contact a member of our tax team on 01228 711888 if you have any queries or are thinking of making a disposal.