The annual exempt amount (CCT Annual Exemption) has been confirmed at £9,600 for individuals for 2008/09. Other changes to the CGT system, announced in 2007 and the subject of much debate, have been confirmed from 6th April 2008, including the 18% single CGT rate.
Other reliefs, such as those relating to principal private residences, losses brought forward. Enterprise Investment Scheme and Venture Capital Trusts, and business asset rollover relief, will continue to be available. Assets acquired before 31 March 1982 will be deemed to have had a cost equivalent to their market value at that date.
Entrepreneurs' Relief gives an effective 10% rate for the first £1 million of lifetime capital gains on the disposal of trading businesses and on certain disposals of shares in trading companies. The relief actually works by reducing the gain by 4/9, leaving the residual 5/9 gain to be taxed at 18% (5/9 x 18% = 10%).
The £1 million may be made up of any number of disposals after 5 April 2008 and, unlike the former retirement relief (on which the rules are based), there is no minimum age qualification. There is, however, a one year qualifying period and other conditions to be met. Trustees will also be able to claim, jointly with a 'qualifying beneficiary'.
Capital gains made by companies are dealt with separately under the corporation tax regime, and these arrangements have not changed. The nil-rate band for IHT has been confirmed at £312,000 for 2008/09.
