Capital Gains Tax

         
TA.7 - Rates of Capital Gains Tax                    
1977-78 to 1979-80                    
           
  Total net gains for year
of assessment    		 Tax chargeable      
 
           
Individuals: Not exceeding £1,000     Nil      
  £1,001 - £5,000     Excess gains over £1,000 at 15%      
  £5,001 - £9,499     £600 plus excess gains over £5,000 at 50%      
  £9,500 or more     All gains at 30%      
           
Trusts: Not exceeding £500     Nil      
  £501 - £1,249     Excess gains over £500 at 50%      
  £1,250 or more     All gains at 30%      
1980-81 to 2002-03                
           
  Annual exempt amount     Rate of tax(1) chargeable on excess
of gains over annual exempt amount     
 
        Individuals       Trusts Individuals       Discretionary
and
accumulation
trusts

Interest in possession
trusts and personal representatives  
1980-81
3,000
1,500
30%
30%
30%
1981-82
3,000
1,500
30%
30%
30%
1982-83
5,000
2,500
30%
30%
30%
1983-84
5,300
2,650
30%
30%
30%
1984-85
5,600
2,800
30%
30%
30%
1985-86
5,900
2,950
30%
30%
30%
1986-87
6,300
3,150
30%
30%
30%
1987-88
6,600
3,300
30%
30%
30%
1988-89
5,000
2,500
Income tax rates
Trust rate
Basic rate of income tax
1989-90
5,000
2,500
Income tax rates
Trust rate
Basic rate of income tax
1990-91
5,000
2,500
Income tax rates
Trust rate
Basic rate of income tax
1991-92
5,500
2,750
Income tax rates
Trust rate
Basic rate of income tax
1992-93
5,800
2,900
Income tax rates
Trust rate
Basic rate of income tax
1993-94
5,800
2,900
Income tax rates
Trust rate
Basic rate of income tax
1994-95
5,800
2,900
Income tax rates
Trust rate
Basic rate of income tax
1995-96
6,000
3,000
Income tax rates
Trust rate
Basic rate of income tax
1996-97
6,300
3,150
Income tax rates
Trust rate
Basic rate of income tax
1997-98
6,500
3,250
Income tax rates
Trust rate
Basic rate of income tax
1998-99(2)
6,800
3,400
Income tax rates
Trust rate
Trust rate
1999-2000(2)
7,100
3,550
Income tax rates (3)
Trust rate
Trust rate
2000-01(2)
7,200
3,600
Income tax rates (4)
Trust rate
Trust rate
2001-02(2)
7,500
3,750
Income tax rates (4)
Trust rate
Trust rate
2002-03(2)
7,700
3,850
Income tax rates (4)
Trust rate
Trust rate

Footnotes

  1. Income and trust tax rates are contained in the Table TA.2.
  1. For 1998-99 onwards, taper relief may reduce the proportion of gains chargeable as described in the following table. See also paragraph 7 of the text to the 'Capital gains tax' section.
  1. Treated as savings income, except that Capital Gains in the starting rate band are taxed at 20%      
  1. Treated as savings income.        
Taper relief (for gains on disposals after 5.4.1998)
 
  Proportion of gain chargeable (%)
 
Number of complete years after 5.4.1998 for which asset held
Year of   0 1 2 3 4 5 6 7 8 9 10 or more
disposal Type of asset                      
                         
1998-99 Business (1), (2) 100 92.5 85 77.5 70 62.5 55 47.5 40 32.5 25
  Non-business (1) 100 100 100 95 90 85 80 75 70 65 60
                         
1999-2000 Business (1), (2) 100 92.5 85 77.5 70 62.5 55 47.5 40 32.5 25
  Non-business (1) 100 100 100 95 90 85 80 75 70 65 60
                         
2000-01 Business (2) 100 87.5 75 50 25 25 25 25 25 25 25
  Non-business (1) 100 100 100 95 90 85 80 75 70 65 60
                         
2001-02 Business (2) 100 87.5 75 50 25 25 25 25 25 25 25
  Non-business (1) 100 100 100 95 90 85 80 75 70 65 60
                         
2002-03 Business (2) 100 50 25 25 25 25 25 25 25 25 25
  Non-business (1) 100 100 100 95 90 85 80 75 70 65 60
 
1Assets acquired before 17.3.1998 qualify for an addition of 1 year to the period for which they are treated as held after 5.4.1998.
2Business assets
are defined broadly as: 		an asset used for the purposes of a trade carried on by the individual or by a qualifying company (3),(4) of that individual; or
an asset held for the purposes of a qualifying office or employment (for periods before 6 April 2000 the employment had to be substantially full time ); or shares in a qualifying company (3), (4) held by the individual.
 
3For the period 6 April 1998 to 5 April 2000, a company was a qualifying company for an individual if it was a trading company or the holding company of a trading group and the individual could exercise either (a) at least 25% of the voting rights in that company or
(b) at least 5% of the voting rights in that company, provided the individual was a full-time working officer or employee of that company. There are similar provisions in respect of trusts.
                         
4For periods from 6 April 2000, a company is a qualifying company for an individual if it is either:-
(1) a trading company or the holding company of a trading group and is
(a) unlisted or
(b) the individual is an employee or officer of the company, or
(c) the company is listed and the individual has not less than 5% of the voting rights or
(2) a non-trading company where the individual is an employee or officer and does not have a material interest of more than 10% in the company.
There are similar provisions in respect of trusts.
                         
 
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