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CAPITAL GAINS TAX
2017/18
2016/17
Main rates
Individual basic rate
10% 10%
Individual higher rate
20% 20%
Trusts and estates
20% 20%
Gains on
residential
property not
eligible for
PPR relief and
carried interest
Individual basic rate
18% 18%
Individual higher rate
28% 28%
Trusts and estates
28% 28%
Annual
exemption
Individuals
£11,300 £11,100
Trusts
£5,650
£5,550
Entrepreneurs’
relief
Applicable rate
10% 10%
Lifetime limit
£10m £10m
Investors’ relief
Applicable rate
10% 10%
Lifetime limit
£10m £10m
INHERITANCE TAX
2017/18
2016/17
Nil-rate band threshold*
£325,000 £325,000
Main residence nil-rate band**
£100,000
N/A
Combined threshold limit for married
couples and civil partners, including
main residence nil-rate band
£850,000 £650,000
* Up to 100% of any unused part of a deceased person’s nil-rate band can
be claimed by the surviving spouse/civil partner on their death.
** For estates worth in excess of £2m, the additional main residence
nil-rate band will be tapered at a withdrawal rate of £1 for every £2 over the
threshold.
n
Tax rates
2017/18
2016/17
Main rate
40% 40%
Chargeable on lifetime transfers
20% 20%
Transfers on or within 7 years of death*
40% 40%
Reduced rate**
36% 36%
* All lifetime transfers not covered by exemptions and made within 7 years
of death will be added back into the estate for the purposes of calculating
the tax payable. This may then be reduced as shown in next the table.
** Applies if 10% or more of net estate given to charity.
Years before death
0-3
3-4
4-5
5-6
6-7
Tax reduced by
0% 20% 40% 60% 80%
Contact us about exemptions.