The current rates of CGT are 18% to the extent that any income tax basic rate band is available and 28% thereafter. The rate for disposals qualifying for Entrepreneur’s Relief (ER) is 10% with a lifetime limit of £10m for each individual.
No specific announcement has been made of the rates for next year.
Comment
The ER limit is very generous and owners of businesses should ensure that they meet all the conditions necessary to secure the relief throughout the twelve months up to the date of a disposal.
CGT annual exemption
No announcement has been made in respect of the CGT annual exemption for 2013/14. The Chancellor did announce that the exemption would be £11,000 for 2014/15 and £11,100 for 2015/16.
IHT nil rate band
The IHT nil rate band remains frozen at £325,000 until 5 April 2015. The Chancellor announced that it will rise to £329,000 for 2015/16.
