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Registered to carry on Audit Work in the UK and regulated for a range of Investment Business Activities by The Institute of Chartered Accountants in England and Wales
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AND CHANGES FOR 2017/2018 previously announced
(Subject to details in the Finance Bill)
Ellis Atkins have taken all due care in the presentation of these notes. No responsibility for loss occasioned to any person or company acting or refraining from action as a result of any material in these notes can be accepted by Ellis Atkins, its partners or staff. Please contact us or your own professional advisor for advice specific to your circumstances.

Capital gains for non-business assets are assessed as the top slice of an individual’s income.

From April 2016, capital gains that fell below the higher rate threshold for income tax for individuals, trusts and personal representatives are charged at 10% and capital gains falling above the higher rate threshold are taxed at 20%.

The above capital gains tax rates do not apply to gains arising from residential property, the ATED regime and carried interest paid to asset managers or gains qualifying for Entrepreneurs Relief or Investors relief, which are still subject to a capital gains tax charge based on the rates of 18%, 28% or 10%.

Trusts are charged 20% on all capital gains above the trust’s annual exemption. (Except in relation to chargeable gains from the disposal of residential property when the Capital Gains Tax rate is 28%).

For 2017/18 the annual exemption increases to £11,300 for individuals and £5,650 for most trusts.

Substantial shareholder exemption – this exempts the disposal of certain shares in subsidiaries from corporation tax on any capital gain. The rules are to be simplified to remove the investing company requirement and provide exemption for companies owned by institutional investors.