Following last month’s budget it is, for most people, a case of no change despite several rumours circulating in the previous weeks. The main contents with regard to Capital Tax were as follows:
Capital Gain Tax
The Annual Exemption for 2018/19 will be £11,700 for individuals and £5,850 for Trustees.
The rates of CGT remain unchanged as follows:
For 2nd Residential Properties
Up to Higher Rate Threshold 18%
Above Higher Rate Threshold 28%
For all other gains
Up to Higher Rate Threshold 10%
Above Higher Rate Threshold 22%
Inheritance Tax
The rate of Inheritance Tax continues to be 40%. The Nil Rate band continues to be £325,000.
The Residence Nil Rate Band will increase from its current level of £100,000 to its previously announced new level in 2018/19 of £125,000. This will rise by a further £25,000 per annum until 2021/21 when it reaches £175,000.
Transfers between spouses and registered civil partners remain exempt, and these may also continue to pass over any unused Nil Rate and Residence Nil Rate Band to their spouse or registered civil partner upon first death.