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This is the tax you pay if you make a profit when disposing of a capital asset such as land, investments or property.

You can offset capital losses against capital gains when calculating your liability.

You may be liable to pay capital gains tax on the sale of your home if you claim the cost of running part of it as a business expense.

Capital Gains Tax
2008/09
2007/08
Individuals - exemption
£9,600
£9,200
For 2008/09, balance of gains charged at 18%.
For 2007/08, balance of gains (reduced by taper relief*) charged as top slice of income (at savings rates i.e. 10%, 20% or 40%).
       
Trusts - exemption
£4,800
£4,600
- balance of gains (reduced by taper relief* for 2007/08).
18%
40%
*Taper relief abolished for gains arising on or after 6 April 2008.

Entrepreneurs’ Relief
For gains arising on or after 6 April 2008, the first £1m of qualifying gains are charged at an effective rate of 10%. Gains in excess of £1m are charged at 18%.