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CAPITAL GAINS TAX
2018/19 2017/18
Main rates
Individual basic rate
10%
10%
Individual above
basic rate
20%
20%
Trusts and estates
20%
20%
Gains on residential property not eligible for
PPR relief and carried interest - surcharge
8%
8%
Annual
exemption
Individuals
£11,700
£11,300
Trusts
£5,850
£5,650
Entrepreneurs’
relief
Applicable rate
10%
10%
Lifetime limit
£10m £10m
Investors’ relief
Applicable rate
10%
10%
Lifetime limit
£10m £10m
INHERITANCE TAX
2018/19 2017/18
Nil-rate band threshold*
£325,000 £325,000
Main residence nil-rate band**
£125,000 £100,000
Combined threshold limit for married
couples and civil partners, including main
residence nil-rate band
£900,000
£850,000
* 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. This also applies to
the main residence nil-rate band, albeit the main residence nil-rate is subject to
the taper withdrawal below.
** For estates worth in excess of £2m, a 50% taper withdrawal applies.
Tax rates
2018/19 2017/18
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 the next 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%