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Standard and higher rates of capital gains tax (CGT) together with the annual exemption. The special rate of CGT and the limit applying for entrepreneurs’ relief purposes.
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Capital Gains Tax (CGT) is payable by individuals, trustees and 'personal representatives' (PRs). Companies pay corporation tax on their capital gains.
There are annual tax free allowances (the 'annual exempt amount') for individuals, trustees and PRs. Companies do not have an annual exempt amount.
For individuals net gains are added to 'total taxable income' to determine the appropriate rate of tax. The standard rate applies only to the net gains which, when added to total taxable income do not exceed the 'basic rate band'.
Gains which qualify for 'Investors' Relief' are charged at 10% for the first £10m of qualifying gains.
Gains which qualify for 'Business Asset Disposal Relief' are charged at 10% for the first £1 million.
The higher rate applies to higher rate and additional rate taxpayers.
Additionally, higher rates of 18% and 28% may apply to the disposal of certain residential property.
We at Reid & Co have been closely monitoring the spread of Covid-19 in the UK and wish to emphasise that we have taken appropriate steps to ensure continuity of service for all our clients. These steps have been implemented so that we are available to help and support you and your business through these extremely difficult times.
Protecting our employees and clients Our number one priority is the health and safety of our employees, clients and visitors and have put the following hygiene policies in place at our office:
We are constantly reviewing our business continuity plan, and wish to reassure all our clients that we are still open for business as usual. All employees have been given the option to work from home if they wish, remaining staff will follow appropriate procedures to keep staff safe and healthy.