Capital Gains Tax

Annual exempt amount 2012/13: individuals £10,600, trustees receive up to half this and pay at a flat rate of 28%. Net gains after all reliefs, losses and annual exempt amount are taxed at 18% (basic rate band) and 28% (higher rate band).

The applicable rate is determined by adding the net gains after losses, all reliefs and annual exemption to taxable income.

Entrepreneurs' relief
For disposals of sole trade or interest in a partnership trade, or shares in a trading company by an officer or employee owning at least 5%, the gain (up to the lifetime allowance) is taxed at 10%.  The lifetime limit is £10m for disposals after 5/4/2011.

You are advised to consult us before acting on any information contained herein.