The New CGT rate for 2009-2010

Yuping
Yuping Registered Posts: 22 Dedicated contributor 🌟 🐵 🌟
Hello everyone,

Just checked the new CGT rate for 09-10 is 18%! How to use this? I only learnt about the rates in 07-08, it was adding on the other incomes based on 10% , 20% and 40%.

Can someone help here?

Comments

  • sloshed
    sloshed Registered Posts: 100 🎆 🐘 🎆
    Hi

    The gain is taxed at flat rate of 18%. There is no longer any taper relief.

    Hope that helps
  • Yuping
    Yuping Registered Posts: 22 Dedicated contributor 🌟 🐵 🌟
    Hi, thanks for your reply,

    Do you know whether indexation allowance was still in the same old rules?
    does this CGT flat rate mean we calculate income/salary tax separately?
    If anywhere can I get more info about this Pls?


    Many thanks

    Yuping
  • sloshed
    sloshed Registered Posts: 100 🎆 🐘 🎆
    Hi

    More information can be found here

    http://www.hmrc.gov.uk/cgt/
  • A-Vic
    A-Vic Registered Posts: 6,970
    Am i right in thinking as well as taper relief there isnt indexation either
  • sloshed
    sloshed Registered Posts: 100 🎆 🐘 🎆
    Hi

    To clarify on the CGT when the 18% rate of CGT was brought in. Indexation which was replaced by taper in 1998 and taper relief was no longer allowed. The 18% rate is in effect to allow for this.

    There is still a possibly to get indexation where a transfer has happened between related parties prior to 1998 but this is a bit complicated and if you need details please send me a PM.

    It is of course different for companies.

    Hope that helps.

    Brian
  • deanshepherd
    deanshepherd Registered Posts: 1,809
    Interesting. I thought indexation had gone altogether.

    In what circumstances does it still apply for individuals?
  • sloshed
    sloshed Registered Posts: 100 🎆 🐘 🎆
    Husband buys an asset in 1993 for say £100K. Transfers to wife in 2002. She sells the shop in say October 2008

    The transfer in 2002 would be £100,000 plus Indexation of £15,200. Wife then has a base cost of £115,200 and has obtained the benefit of indexation allowance
  • deanshepherd
    deanshepherd Registered Posts: 1,809
    Ah I see. I wouldn't categorise that as gaining a benefit of indexation allowance now, rather in 2002 under the rules in place at that time.
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