24th March 2010 BUDGET PROPOSALS
AND CHANGES FOR 2010/2011 previously announced
(Subject to details in the Finance Bill)
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3.1 A new regime for Capital Gains Tax was introduced from 6th April 2008 for individuals and trustees. Gains are taxed at a flat rate of 18%, with taper relief and indexation of costs being abolished retrospectively.

3.2 The annual exemption remains at £10,100 (£5,050 for most trusts) for 2010/2011. Other reliefs unaffected by the new regime include roll-over, hold-over, principal private residence and lettings relief.

3.3 Entrepreneurs’ Relief was introduced from 2008/09. The relief is available to certain individuals involved in running a business, in respect of gains made on the disposal of all or part of the business, or on gains made on disposals of assets following the cessation of the business. From 2010/2011 the first £2 million of lifetime gains that qualify for the relief are charged to CGT at an effective rate of 10% (increased from £1 million). Gains in excess of £2 million are charged at the normal 18% rate. An individual will be able to make claims for relief on more than one occasion, up to a lifetime total of £2 million of gains qualifying for relief.