22nd April 2009 BUDGET PROPOSALS
AND CHANGES FOR 2009/2010 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 The 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, and is increased from £9,600 to £10,100 (£5,050 for most trusts) for 2009/2010. 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. The first £1 million of lifetime gains that qualify for the relief are charged to CGT at an effective rate of 10%. Gains in excess of £1 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 £1 million of gains qualifying for relief.