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UK taxation of securities
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| CAPITAL GAINS TAX
CGT is payable on the amount of profit or gain made when you sell or otherwise dispose of an asset, for example by giving it as a gift or transferring ownership to someone else.
As announced in the June 2010 Budget, there are now two rates of CGT for individuals – a standard rate of 18% and a higher rate of 28%. From 23 June 2010, the rate of CGT payable on gains realised on or after that date depends on the level of the individual's taxable income and post-22 June 2010 gains for the tax year.
The higher rate applies to gains realised after 22 June 2010 where an individual has total taxable income and gains for the tax year of more than the basic rate band for income tax. For 2010/11 this is set at £37,400. In deciding whether the higher rate applies, no account is taken of any gains realised before 23 June 2010. Where an individual's total taxable income and post-22 June gains are below £37,400 the standard rate of 18% applies.
All gains realised before 23 June 2010 are taxed at 18%. The figure for total taxable income and gains is calculated after taking into account all allowable deductions including losses, personal allowances and the CGT annual exempt amount.
All taxpayers will continue to benefit from the annual exempt amount, which remains unchanged at £10,100 for 2010/11.
Meanwhile, the rate of CGT for trusts and personal representatives of deceased persons has been increased to 28%, for gains arising on or after 23 June 2010, except where Entrepreneurs' Relief applies.
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