The New CGT rate for 2009-2010
Yuping
Registered Posts: 22 New 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?
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?
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Comments
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Hi
The gain is taxed at flat rate of 18%. There is no longer any taper relief.
Hope that helps0 -
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
Yuping0 -
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Am i right in thinking as well as taper relief there isnt indexation either0
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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.
Brian0 -
Interesting. I thought indexation had gone altogether.
In what circumstances does it still apply for individuals?0 -
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 allowance0 -
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.0
