Capital Gains Tax and the latest Budget

The latest Budget has increased the value of the gains on the sale of your business which will only be taxed at 10%. Until 5 April 2010 the level was £1 million, from 6 April 2010 until 22 June 2010 it rose to £2 million and from 23 June 2010 it increased significantly to £5 million. Any excess gains – during your lifetime – over the limit will be taxed at 28%.

The sale of non-business assets will result in a 28% liability unless you are basic rate taxpayer when some of the gain may be liable at only 18%.  In cases such as these it would be helpful to transfer a share of the asset that is not jointly owned already to a spouse or civil partner as they will have their annual exemption available and some of the excess may only be assessed at 18%