Capital Gains Tax (CGT)
There were no major announcements with regards to CGT in this year’s Autumn Statement.
The CGT rates in place from 6 April 2016 are as follows:
· basic rate taxpayer 10% (reduced from 18%)
· higher rate taxpayer 20% (reduced from 28%)
In addition to this, 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.
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.