23rd March 2011 BUDGET PROPOSALS
AND CHANGES FOR 2011/2012 previously announced
(Subject to details in the Finance Bill)
Ellis Atkins have taken all due care in the presentation of these notes. No responsibility for loss occasioned to any person or company acting or refraining from action as a result of any material in these notes can be accepted by Ellis Atkins, its partners or staff. Please contact us or your own professional advisor for advice specific to your circumstances.

3.1 From 23rd June 2010 three rates of Capital Gains Tax have applied, 10%, 18% and 28%.

3.2 Capital gains for non-business assets are assessed as the top slice of an individual’s income. Capital gains that fall below the higher rate threshold for Income Tax, are charged at 18% and capital gains falling above the higher rate threshold taxed at 28%.

3.3 Trusts are charged 28% on all capital gains, above the trusts’ annual exemption.

3.4 The annual exemption is increased to £10,600 for individuals (£5,300 for most trusts) for 2011/12.

3.3 From 2011/12 the first £10 million of lifetime gains that qualify for Entrepreneurs’ Relief are charged to CGT at 10% (increased from £5 million). Gains in excess of £10 million are charged at the normal 18% or 28% rate. An individual will be able to make claims for relief on more than one occasion, up to a lifetime total of £10 million of gains qualifying for relief.