Annual exemption
| 2008/09 | 2007/08 | |
| individuals | £9,600 | £9,200 |
| trusts | £4,800 | £4,600 |
For personal gains realised after 5 April 2008, indexation is removed. For assets held prior to 31 March1982 there is a mandatory rebasing of cost to their March 1982 value. CGT will be charged at 18%.
A new ‘entrepreneurs relief’ is being introduced for the disposal of trading businesses, certain shareholdings in trading companies/groups and the disposal of other capital assets associated with the disposal of the business/shares. This provides a lifetime allowance whereby the first £1m of qualifying lifetime capital gains is reduced by 4/9 i.e. an effective CGT rate of 10% (ignoring losses and the annual exempt amount)