|On chargeable gains||2021/22||2020/21|
|On the disposal of residential property interests and carried interest:|
|Up to income tax basic rate limit||18%||18%|
|Over income tax basic rate limit||28%||28%|
|On other chargeable gains:|
|Up to income tax basic rate limit||10%||10%|
|Over income tax basic rate limit||20%||20%|
|Annual exemption for individuals||£12,300||£12,300|
|Annual exemption for most trustees||£6,150||£6,150|
Business asset disposal relief
Capital gains qualifying for business asset dsposal relief are taxed at 10%. Business asset disposal relief can be claimed on more than one occasion up to a "lifetime" limit of £1 million of qualifying capital gains.
Transfer of assets between spouses and civil partners
Transfers of assets between spouses and civil partners are generally not chargeable disposals for capital gains tax purposes.
|Nil rate band||£325,000||£325,000|
|Maximum combined nil rate band:|
|Married couples and civil partners||*£650,000||*£650,000|
|Rates of Inheritance Tax:|
|Chargeable lifetime transfers||20%||20%|
|Transfers on, or within 7 years of, death above the nil rate band||**40%||**40%|
An additional residence nil rate band applies when a home transfers on death to direct descendants of the deceased after 5 April 2017. The residence nil rate band for 2021/22 is £175,000.
*any nil rate band not used on a person's death can be transferred to their surviving spouse or civil partner
**subject to a tapered reduction for transfers between 3 and 7 years before death
Monday - Friday
9.30 am to 5.00 pm
Clive Shedd & Co
232 Sladepool Farm Road
Birmingham B14 5EE
If you wish to make an appointment please contact us:
Tel: 0121 474 4774
Fax: 0121 474 4766
or use our contact form.