The following tax rates and allowances are applicable for the tax year 1997/98 with comparatives for the year 1996/97 and 1995/96.
| CAPITAL GAINS TAX | 1997/98 | 1996/97 | 1995/96 |
|
£ |
£ | £ | |
| Annual exemption | |||
| individuals |
6,500 |
6,300 | 6,000 |
| settlements |
3,250 |
3,150 | 3,000 |
| CGT rate | |||
| Individuals - marginal rates of income tax. | |||
| Settlements - 23% or 34% where the additinal rate charge applies. | |||
| Retirement relief | |||
| exempt gains | first £250,000 | ||
| 50% reduction of gains | £250,000 - £1,000.00 | ||
| INHERITANCE TAX | |||
| Transfers made on or after |
6.4.97 |
6.4.96 | 6.4.95 |
|
Rate |
Rate | Rate | |
| £1-£215,000 |
Nil |
||
| £1-£200,000 |
Nil |
||
| £1-£154,000 | Nil | ||
| Over £215,000 |
40% on death |
||
| Over £200,000 |
40% on death |
||
| Over £154,000 | 40% on death | ||
| Lifetime gifts | |||
| Most lifetime gifts exempt from IHT if donor survives 7 years. Some gifts including those into and out of certain trusts will be taxed at half the death rates. | |||
| Tax charge on gifts within 7 years of death | |||
| Years before death | % of death rates | ||
| 0 - 3 | 100 | ||
| 3 - 4 | 80 | ||
| 4 - 5 | 60 | ||
| 5 - 6 | 40* | ||
| 6 - 7 | 20* | ||
| * No repayment available if tax paid on chargeable lifetime gifts exceeds charge at death. | |||
| Other exemptions | |||
| Small gifts : £250 per donee. Annual gifts : £3,000 per donor. | |||
| In consideration of marriage : parent £5,000; grandparent, remoter ancestor or party to marriage £2,500; other £1,000. | |||
| Transfer to spouse: domiciled exempt; non-domiciled up to £55,000 exempt. | |||
| Business property relief |
% reduction |
% reduction | % reduction |
| Relevant business property |
1997/98 |
1996/97 | 1995/96 |
| Interest in a business |
100 |
100 | 100 |
| Shares giving control in unquoted companies |
50 |
50 | 50 |
| Unquoted or USM - over 25% |
100 |
100 | 100 |
| up to 25% without control |
100 |
100 | 50 |
| Fixed assets used by controlled company or partnership |
50 |
50 | 50 |