Under the new rules, there will be fewer occasions where the capital gains tax pages of a tax return need to be completed. Individuals do not have to complete these pages for tax years 2003/4 and later where

l the total of their tapered chargeable gains do not exceed the annual exemption (£7,900 for 2003/04, £8,200 for 2004/2005) unless

l the proceeds on disposal of chargeable assets was more than four times (increased from two times) the annual exempt amount, or

l they have allowable losses to offset against gains in that year.

Similar rules apply for trustees and personal representatives.

The rules which determine whether assets other than shares or securities qualify as business assets for capital gains tax taper relief are to be relaxed so that a wider range of assets qualify.

The new definition will apply to periods of ownership from 6 April 2003. Assets used wholly or partly for the purposes of trades carried on by individuals, trustees of settlements, personal representatives or certain partnerships will qualify as business assets irrespective of whether the owner of the asset is carrying on the trade concerned.

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This web-site was last updated on 13/06/2008

Copyright © 2003-2008 Mac Kotecha & Company. All rights Reserved. The information on this site is for general guidance only. It is essential to take professional advice on specific issues about their impact on any individual or entity. No liability can be accepted for any errors or omission or for any person acting or refraining from acting on the information provided on this site.