Capital Gains Tax

For the tax year 2008/09 a new simplified Capital Gains Tax regieme is in place where gains are taxed at a rate of 18%. However an "entrepreneurs relief" is available in respect of gains made on the disposal of all or part of a business, or gains made on disposals of assets following the cessation of a business, or gains by certain individuals who were invloved in running a business.

The first £1,000,000 of Capital Gains, that qualify, will be taxed at an effetive rate of 10%. The £1,000,000 "entrepreneurs releif" is a lifetime relief. Individuals will be able to claim on more than one occasion until the £1,000,000 limit is reached. Any further capital gains in excess of the £1,000,000 limit will be taxed at the normal rate of 18%.