At Home : Capital Gains Tax

Chappell Associates are able to advise you on all aspects of Capital Gains and help you deal quickly and effectively with the Inland Revenue.

CGT is a tax levied on an individual when an asset is sold or transferred. There are a number of special exemptions such as the sale of your home or car and an annual axemption.

If you dispose of an asset and make gains over certain limits in a tax year then you could end up with a large tax bill, all capital gains should be disclosed to the Inland Revenue.

CGT is generally charged at your highest rate of tax, and CGT calculations can be complicated in many instances due to many reliefs and deductions.

Annual Exempt Amount	2005-06(£)	2006-07(£)
Individuals etc*	8,500	8,800
Other Trustees	4,250	4,400

* Individuals, trustees of settlements for the disabled, and personal representatives of the estate of a deceased person.

The amount chargeable to CGT is added onto the top of income liable to income tax for individuals and is charged to CGT at these rates:

• below the starting rate limit at 10%
• between the starting rate and basic rate limits at 20%
• and above the basic rate limit at 40%